Tentative stabilisation, sluggish recovery? – ANZ

Analysts at ANZ Bank noted the Monetary Fund’s latest World Economic Outlook report shows signs of optimism for markets, although reports that global macroeconomic data is yet to improve meaningfully.

Key quotes

"Global growth outlook has again been trimmed (by 0.1% pts in both 2019 and 2020 to 2.9% and 3.3% respectively and by 0.2ppt in 2021 to 3.4%)."

"The Report notes that the downward revision primarily reflects negative surprises to economic activity in a few emerging market economies, notably India."

"More positively, the IMF notes that, since its October Update, tentative signs of a bottoming out in global manufacturing and trade, a shift towards more accommodative monetary policy, intermittent favourable news on US-China trade and reduced fears of a no-deal Brexit have boosted market sentiment."

"However, global macroeconomic data is yet to improve meaningfully."