Global political effervescence dominated markets over recent times and as a result it has managed on many occasions to diminish the impact of much of the good economic news. But despite this backdrop, the reality is that economic growth has continued to improve. In the euro area GDP has strengthened steadily in the past two years, the United States seems to be near the peak of its economic cycle while emerging markets have enjoyed growth rates on average of 4% or more. This improved GDP expansion is however largely cyclical – it is the result of monetary, and to a lesser extent, fiscal policy. Hence the recovery remains modest and further improvement will depend on more structural changes, such as those brought on by the digital economy.
Source : AXA Real Estate