Author: NN Investment Partners
In the course of 2016, hopes of a reflation of the global economy increased as the anticipation of a better balance between monetary and fiscal policy resulted in an increase in bond yields and commodity prices.
A rough start, but a happy end
2016 had a rough start but ended on a positive note. January and the first weeks of February were characterised by fears of a global recession, induced by a slump in crude oil price and large capital outflows from China and other emerging markets, causing a sharp increase in risk aversion around the globe. The last few months of the year were characterised by hopes of a reflation of the global economy as the anticipation of a better balance between monetary and fiscal policy resulted in an increase in bond yields and commodity prices. This reflation trade was spurred by the surprise election of Donald Trump as the 45th president of the United States.
Global economic outlook (%)
