Where Next in Terms of Global Growth?

Quick take
2 min read
March 3, 2021
While most countries' real GDP growth was buffeted in 2020 by the COVID-19 pandemic, the emerging market & developing economies were less affected (-3.3%) than advanced ones (-5.8%). We also observed better relative performance from emerging markets, with the MSCI Emerging Markets Index outperforming the MSCI World Index in 2020. Emerging markets have shown resilience. And, encouraged by vaccine breakthroughs and the new U.S. administration's approach to international relations, some investors have begun to look upon globalization with less skeptical eyes. The IMF has forecasted an average annualized growth rate of 5.1% for emerging economies over the next five years while advanced economies' growth will remain stable at around a 2.5% annually.

Global Growth

IMF. Data from 1980 to 2025.

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Global Investing Trends

Investing globally can help investors work toward global diversification, tap into new opportunities for growth and harness the potential in the rise in importance of emerging markets.

Dispersion in Equity Markets

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Global Research and Development Spending as Percentage of GDP

Corporate and government spending on research and development (R&D) accounted for about 2% of GDP globally, as of December 2018, with wide variation by country.
1 Source: International Monetary Fund.

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