Consumer spending of built-up savings could contribute an additional three percentage points to global economic growth in 2022 as pandemic restrictions ease, according to the latest report by Mastercard Economics Institute.
The report reveals how savings and spending, supply chains, travel, and digital acceleration will continue to shape the global economy next year, among other factors.
On savings and spending, it also said the excess savings in the developed economies of Asia Pacific are a source of strength in consumption in 2022 and beyond.
Specifically, a faster scenario for spending excess savings would mean a two percentage point acceleration in consumer spending growth for several markets in 2022, including Australia, New Zealand, Japan, and Korea, it added.
It also expected household spending on services in Asia to accelerate next year, with goods demand staying robust in 2022. And exports remain a major positive factor for Asia, despite lingering supply chain disruptions, prolonging high logistics costs, and a surge in global commodity prices, the report said.
It saw an uptick in leisure travel recovery as international travel opens up, with medium and long-haul flights to gain ground in 2022 and it held an optimistic view on Asia's tourism business in the coming year.
The report also noted that the digital shift in the retail sector will remain at 20 percent next year. "While the recovery trend across Asia may be non-linear, we expect pent-up demand and savings will finally be released by consumers, evidenced by the recovery of 'out-and-about' categories such as apparel and beauty," said David Mann, chief economist of Mastercard AP and MEA.
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