The rollout of the coronavirus vaccine in 2021 should spark a pick-up in the global economy, barring further outbreaks or increased US-China tensions. Where can growth-starved investors expect the biggest gains?
“A progressive unwinding of activity restrictions in 2021 should bring about a recovery across most economic indicators, including employment, consumption and GDP growth,” predicts Morningstar’s Adam Fleck, regional director of equity research Australia & NZ and Shaun Ler, equity analyst.
“Make no mistake though, the recovery will be slow, bumpy and contingent on no more extensive virus outbreaks, vaccines taking effect as intended and a lack of detrimental behaviour changes (such as a lasting aversion towards spending due to insecurity).”