Simply Biz Summer Update
As the country emerges from
lockdown, an increasing sense
of optimism seems to have
filled the air with a much more
familiar feel returning this
summer. And there’s plenty
to look forward to over the
coming months, with a host of
major sporting events including
the Olympics to excite and
enthral us, audiences returning
to theatres and concert halls
across the land, and the
rearranged Chelsea Flower
Show set to extend summer into
late September.
Faster recovery predicted
There also appears to be a similar air
of optimism in relation to economic
matters, with data across the first half
of this year proving to be stronger than
analysts had expected. As a result, there
now seems to be a good chance that
major economies on both sides of the
Atlantic will have recovered the lost
ground caused by the pandemic before
the end of 2021.
Global growth forecasts
upgraded
This has led to a string of renowned
international forecasting agencies
upgrading their global growth projections
during the past few months. The
UN’s mid-2021 World Economic Situation
and Prospects Report, for instance,
revealed an annual growth forecast of
5.4% for this year, up significantly from
January’s 4.7% estimate. This brighter
outlook largely reflects the rapid vaccine
rollout in a few large economies,
principally the US and China, as well as
an increase in global trade.
Diverging fortunes
UN economists, however, did warn that
inadequate availability of vaccines in
many countries was threatening a more
broad-based global recovery. The report
did strike a note of caution, suggesting
that, ‘the economic outlook for the countries
in South Asia, sub-Saharan Africa
and Latin America and the Caribbean
remains fragile and uncertain.’
Advice remains paramount
While the outlook has certainly improved
significantly across the first half of this
year, the UN forecast reinforces how the
pandemic continues to create a relatively
uncertain economic backdrop. This
inevitably means the provision of expert
advice is a vital component of investor
success. We can help you make the
most of any investment opportunities
that do arise.