30 May 2016

2H16 will be tough, but better than 1H16: Schroders

Schroders Investment Management notes that the world economy will pick up after a lacklustre economic growth in the first half of 2016.

"Looking the next two quarters of 2016, there are some signs that growth is picking up and that problems that were holding back some companies earlier in the year are beginning to fade. The consumer side is picking up too, as credit has begun to grow again. However, global growth is still unlikely to be that strong in 2016," says Keith Wade, Chief Economist & Strategist, Schroders.

Wade explained that most of the weakness is part of the aftermath of the global financial crisis, with households, companies, countries and regions still adjusting to the new environment. "Demographics have got a part to play as well. There has been a slowdown in the growth of the working population and productivity growth has slowed down too," he added.

While shorter-term, the global economic outlook is brighter than it used to be, the longer-term is still going to be quite tough, he warned.


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