Citi upbeat on cyclical industries amid GDP dip

Citibank forecasts global GDP growth to decelerate to 3.8% this year as the world economy enters a slowdown amid growing inflation and imminent interest rate hikes, though it remains optimistic about the growth of cyclical industries with long-term growth.

Citibank analysts recommend investors focus on long-term leaders that yield positive and consistent returns such as IT, healthcare and consumer staples, high-yield bonds and debt in emerging markets in Asia. Analysts urge a focus on investment trends that have consistently been on the rise.

They estimate global equities will yield 7-8% returns in 2022 and expect global fixed income to offer 1-0%. Investors should focus on sustainable income creation, private markets and using…