Synchronised and sustained economic expansion

Reflation is a virtuous cycle. Wage rises boost consumer spending; this leads to price increases that feed into higher profits, giving businesses the confidence to invest, leading to steady global economic expansion. It all creates a self-sustaining recovery.

Recent economic indicators supports a steady and sustained global economic expansion. Business confidence are up in many markets around the world and we see further upside to growth forecasts for key developed economies. That gives us confidence that global growth is both resilient and synchronised.

Most importantly, the growth momentum in the developed world is spreading and is supporting a rebound in emerging markets – notably Asia.

Risks still exist, of course. But it is important to focus on the opportunities this shift can provide across the longer term in Asia and globally.

Emerging markets will still drive global growth…

Contribution to Global Growth, %

Emerging markets

Source: IMF, World Economic Outlook, April 2017
For illustrative purpose only. There is no guarantee that any forecasts made will come to pass.