As lockdown restrictions gradually ease, the public mood appears to be shifting, with a more positive atmosphere returning this summer.
This is unsurprising, as there is much to be positive about in the weeks and months to come. Crowds are set to return to theatres and music venues, the Chelsea Flower Show will be going ahead, and sports fans are excited to be returning to events and fixtures.
A faster than expected recovery
This renewed sense of optimism also extends to the economy, with data for H1 2021 demonstrating a stronger economic performance than previously anticipated. Due to this, it is looking likely that major economies across the globe are on track to return to near pre-pandemic conditions before 2021 is over.
Global economic growth projections strengthened
This improved outlook has caused many internationally renowned forecasting agencies to strengthen their projections for worldwide growth over the past few months. The latest World Economic Situation and Prospects Report published by the UN, for instance, bumped its annual growth forecast up to 5.4% – a significantly higher figure than its previous estimate of 4.7% in January. For the most part, this positivity is reflective of the speedy rollout of vaccination programmes in economies such as the US and China, in addition to increased global trade.
However, a vaccine-driven recovery is creating inequalities, with a lack of vaccine availability in some countries threatening a broader global recovery. The UN warned that ‘the economic outlook for the countries in South Asia, sub-Saharan Africa and Latin America and the Caribbean remains fragile and uncertain.’
The future’s bright
While the future is looking much brighter as we advance further into 2021, the UN forecast (and subsequent warnings) highlight the continued impact of the pandemic on economic prospects. That is why taking professional advice continues to be vital to investment success. We can help you take full advantage of any investment opportunities that arise.
The value of investments and income from them may go down. You may not get back the original amount invested. A pension is a long-term investment. The fund value may fluctuate and can go down. Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation.