We expect the global economy to continue its recovery over 2021, which is well supported by government stimulus and ultra-accommodative monetary policy. However, this pace of recovery will be uneven as only a small number of countries, including China, South Korea, Taiwan (PRC) and the United States are likely to see total output surpass 2020 levels.
For most developed economies, including Australia and New Zealand, we expect growth to slowly return to pre-crisis levels by the end of 2021. The ongoing global economic recovery combined with easy monetary and fiscal policy has resulted in an attractive outlook for global equities. Going forward, we expect corporate earnings to rebound as economic growth normalises and favourable central bank policies and fiscal stimulus will likely supress left tail events.
Download Positioning for Growth in 2021 to find out what 2021 has in store for Australian and New Zealand investors.
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