In trying times, the word ‘economy’ sparks instant negativity. We all remember the global recession. The recession impacted families all over the world. Businesses were closing down by the day as many struggled to even put food on the table. However, 2021 is a year for investors and alike to be more positive, as we start to move on from life after COVID-19. There is no denying that risks definitely remain, however global growth is undoubtedly on the rise as well.
So, why should we be positive regarding the year ahead? Firstly, The International Monetary Fund released figures stating that global growth was predicted that growth is expected to be 0.9 per cent higher than originally estimated, meaning that things are not as gloomy as anticipated. IMF expects growth of 6 per cent in 2021, and 4.4 per cent in 2022.
There are many factors that have contributed to this growth. However, many experts believe that the main factor is that the brakes to recovery are being progressively loosened. When it comes to emerging markets, better activity has been driven thanks to a rebound in exports. On the other hand, in relation to advanced economies, final demand has broadly increased. Nonetheless, this positivity is not to say that risk has been entirely eradicated. There are still downside risks and fragilities to be mindful of. That’s why the likes of BulbFin – expert financial advice is recommended.
On the whole, 2021 is a year to start to be positive, especially when considering the years that have passed before. Many investors will be reassessing their asset management for the year ahead to see where there is scope for opportunity. Taking that into account let’s take a look at the fastest growing economies for 2021:
- The Democratic Republic of Congo
These economies are predicted to be the fastest-growing throughout the coming year. The Democratic Republic of Congo is set to rise from 6.2 per cent to 10.5 per cent, whilst Mozambique is going to rise from a projected 7 per cent to 8.5 per cent. Nonetheless, there are several risks associated with investing in the countries that have been mentioned, and this is why thorough financial management is needed before making any big decisions. You have to consider potential headwinds, such as volatile equity prices, currency fluctuations, slowing capital inflows and changing monetary policies across the globe.
Instead, many investors will be looking towards economies showing growth yet also offering a more secure platform for investment. Therefore, instead of investing in an emerging market, why not consider a developed economy? The following countries are examples of those that are predicted to grow over the coming year – Hong Kong, Taiwan, South Korea, New Zealand, Australia, United States, Sweden, Norway and Canada.
So there you have it, an insight into the year ahead. There is certainly a lot of positivity surrounding global growth. Nonetheless, as always, investments must be considered extremely carefully, as risk will always be present.