In focus

Economic and Strategy Viewpoint - June 2020

  • We are downgrading our forecast for global growth once more to reflect the weakness of the first quarter. Activity remains weak, but there are signs we are past the worst and a bounce back in activity is expected in Q3.
  • However, beyond this point uncertainty abounds. Forecasting the economy has become a judgement on the speed with which lockdowns are lifted around the world and the subsequent path of the virus. Our central view is that the virus is contained, but epidemiologists stress the risks of a second wave of infection.
  • Meanwhile, governments need to rein in fiscal support and after pent-up demand has been satisfied the pandemic is likely to make households more cautious. Business is also expected to be hesitant in resuming capital spending and like government will look to reduce debt levels.
  • The recovery is tempered as a result and such scarring effects mean we do not regain pre-Covid levels of activity by the end of 2021, making the forecast less of a V shape and more of a U.  

Read the full report

Economic and Strategy Viewpoint - June 2020 15 pages | 577 kb


Important Information: This communication is marketing material. The views and opinions contained herein are those of the author(s) on this page, and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. This material is intended to be for information purposes only and is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. It is not intended to provide and should not be relied on for accounting, legal or tax advice, or investment recommendations. Reliance should not be placed on the views and information in this document when taking individual investment and/or strategic decisions. Past performance is not a reliable indicator of future results. The value of an investment can go down as well as up and is not guaranteed. All investments involve risks including the risk of possible loss of principal. Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy. Some information quoted was obtained from external sources we consider to be reliable. No responsibility can be accepted for errors of fact obtained from third parties, and this data may change with market conditions. This does not exclude any duty or liability that Schroders has to its customers under any regulatory system. Regions/ sectors shown for illustrative purposes only and should not be viewed as a recommendation to buy/sell. The opinions in this material include some forecasted views. We believe we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know. However, there is no guarantee than any forecasts or opinions will be realised. These views and opinions may change.  The content is issued by Schroder Investment Management Limited, 1 London Wall Place, London EC2Y 5AU. Registered No. 1893220 England. Authorised and regulated by the Financial Conduct Authority.

Contact Schroders Wealth Management

To discuss your wealth management requirements, or to find out more about our services and how we can help you, please contact:

Marc Brodard

Marc Brodard

Head of Private Clients - Switzerland