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By Erin BROWNE, Head of Asset Allocation, Investment Solutions, UBS Asset Management
While synchronized global demand growth was a defining feature of 2017, the short-term growth impulse has been more discordant – with the strength of the US contrasting sharply with softening in other major economies. Overall, the rate of acceleration in global economic growth has moderated, but the residual rate of growth remains strong and above-trend.
We do not see US economic strength wavering significantly in the short-term. While the current growth cycle in the US is already long by historical standards, recent tax reform is likely to spur a reacceleration in demand growth later in the year. Rising capital expenditure also gives us confidence in longer...
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