Essentially Wealth 2024

Looking forward to stronger economic growth

As we step into a new year, the global economy faces uncertainties due to the lingering effects of the pandemic, ongoing conflicts, and geopolitical tensions. Whilst challenges such as these can appear daunting for investors, the key to successful investing remains the same – to focus on long-term goals and to minimise potential risks by maintaining a well-diversified portfolio.

A slow global recovery

The International Monetary Fund (IMF)1, in its most recent assessment just prior to the onset of the Middle East conflict, revised down its baseline global growth forecast. The IMF now anticipates a deceleration from 3.5% in 2022 to 3.0% in 2023 and further to 2.9% in 2024, all falling below the long-term average global growth rate of 3.8%.

Challenges remain but outlook positive

Despite the challenges outlined by the IMF, including weak growth, heightened uncertainty, persistent global inflation, and constrained fiscal options, there are positive elements in the outlook. The report highlighted some more upbeat aspects including disinflation, rebuilt buffers to help manage future shocks and the prospect of stronger, more balanced growth.

Diversification is key

In the current economic climate, robust research capabilities are crucial. That is our strength. It enables us to formulate and develop an effective investment plan tailored specifically to your needs and helps us ensure you continue to hold a well-diversified, balanced portfolio aligned with your long-term financial objectives.