The global economy is expected to experience strong growth in the coming year, despite the challenges posed by inflation.
Norman Villamin, Group Chief Strategist at Union Bancaire Privée (UBP), highlighted the dual nature of the economic forecast, emphasizing that while some sectors may lag, overall growth drivers remain strong.
The election of Donald Trump is seen as a factor that could stimulate the U.S. economy, with anticipated fiscal policy measures and investments in new technologies expected to help avoid a recession.
However, rising wages, particularly due to potential immigration policies, could fuel inflationary pressures.
UBP forecasts GDP growth in the U.S. to range between 2% and 2.5%, with corporate profits likely to increase.
Inflation is expected to rise towards 3% by year-end, and interest rates are projected to reach around 5%.
Economic recovery in Europe is expected to be uneven, with Germany facing challenges in overcoming its economic weaknesses.
Southern European nations like Portugal, Spain, and Italy are anticipated to experience growth.
In Asia, countries like India and Singapore are expected to have positive growth trajectories, while China presents a mixed picture with potential risks.
Investors are advised to adapt their strategies to the specific circumstances of individual markets, sectors, and asset classes, and to remain vigilant and responsive to changing economic conditions.