Global finance was on the menu this morning as Margot and Justine attended the annual Chief Economists Forum in Sydney, where an impressive line-up of economists and strategists shared their insights on what we can expect for the year ahead.
In short, the global outlook may be more positive than previously thought.
With lots of change going on in the world – from the economic ramifications of Brexit to a burgeoning Chinese economy, increased volatility is a given. As a result, 2018 could be a year to stick to key fundamentals.
A recurring theme was the strong growth continuing in China, which many experts refer to as “the 4th Industrial Revolution” or “China 2.0”. With this growth comes higher earnings, which are driving consumption and domestic savings. These in turn are being invested back into the economy – meaning that while there’s significant debt being created, much of this debt is tied up in infrastructure and other tangible investments, making it more secure than debt that’s not asset-based.
So while (as usual) change is the only constant, shifting paradigms and new challenges mean more opportunities in the market for those who are ready to embrace them.