19 Dec 2021
How did the global economy fare in 2021?
The global economy performed strongly in 2021, propelled forward by a strong recovery (reopening) following a significant contraction in 2020, and very much assisted by extraordinary amounts of both government and central bank policy stimulus. According to the IMF, the global economy is on track to end 2021 with approximately 6% growth with strong contributions from both developed and developing economies.
This backdrop certainly helped spur and support a very strong recovery in asset prices in 2021. However, we are focusing our analytical efforts on 2022 and beyond and have been doing so for most of this year as we try to get a handle on how much more government and central bank stimulus we’ll see, and for how long they will both remain supportive, whilst then assessing who and what is best placed to stand on its own versus who and what may really struggle without that level of support. Obviously, we want to be more exposed to the former rather than the latter (if only were it that easy) given the interconnectedness of our world.
If you’d like to discuss any of the points raised, please do not hesitate to contact us on 9324 8888.
PSK Financial Services Group Pty Ltd (ABN 24 134 987 205) trading as PSK Private Wealth, is an Authorised Representative of Charter Financial Planning Ltd (AFSL 234665). General Advice Warning - The advice and information provided in this video presentation may not be suitable to you because it is general advice that has not been tailored to your personal circumstances, goals or financial situation. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation or needs.