There are signs of hope emerging for global growth, but risks remain. The outlook for this year has perked up thanks in part to increased consumer confidence, the recent decline in energy and food prices, as well as an earlier than expected reopening in China.
Optimism in the financial markets seems to be very scarce. Pessimism is rampant but fortunately, the conditions that got us here are not permanent.
The global economy could possibly avert a recession as data is starting to point to a potential soft landing; inflation appears to be moderating, wage pressures seem contained, and consumer confidence is stabilizing.
This has been one of the most chaotic and unpredictable periods in decades. It began with the pandemic; then lockdowns; a massive stimulus; re-openings; supply chain and labour shortages; inflation; war in Europe and then the fears of hiking interest rates.
As we enter a new year that is still being dominated by the pandemic, investors are looking for the best way forward.
Resurgence and recovery have been the watchwords this year, as the global economy regained its footing after the downdraft of the COVID-19 pandemic.
Of course, there are still obstacles ahead, but the outlook continues to be one of resounding promise.
Virus + Vaccine = Volatility. After surging and retreating in the spring and the summer, the Covid-19 pandemic has worsened in recent months but the approval of several very effective vaccines should allow life to mostly return to normal by the fall.
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