Market Highlights

Global economic growth: rebounding?

After its initial recovery from the recession induced by the global credit crisis in 2008, global economic growth has faltered so far this year, with the US and Chinese economies slowing and many European countries slipping into a second recession. Consensus economic forecasts collected by Bloomberg suggest that the world economy will revive over the next two years, but at a much slower rate than was the norm in the years leading up to the crisis. The fastest rates of growth will again be observed in the BRICS countries (Brazil, Russia, India, China and South Africa). If the forecasts are correct, slower growth will continue to act as a headwind for future investment returns.