Economic data released in March showed that a broadly based global economic recovery remained on track. Weak inflation pressures in the developed world were keeping central banks at bay on rates, but with a pick-up in emerging market inflation, central banks in those regions were more focused on tightening policy.
The global economic recovery is broadening and intensifying, as expected, and global GDP growth should exceed 4% this year. But for this to be sustained into next year, we need to see a more meaningful pick-up in fi nal demand, otherwise the recovery so far - driven by temporary fiscal stimulus and changes in inventories - will not be sustained.
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