The survey comes a day after the IMF raised its expectations for global economic growth from 5.2% to 5.5% through 2021
Investors do not expect a return to normality for at least six months, despite growing optimism on the outlook for the global economy, research from UBS has found.
Almost two-thirds (63%) of respondents to UBS’s investor sentiment survey said they did not think life would return to ‘normal’ in the next six months, though three-fifths (60%) of the 4,000 investors and business owners polled across 14 countries between December and January had a positive economic outlook over the next 12 months, up from 55% three months earlier.
Further, 61% of investors said they were optimistic on the outlook for the stock market over the next six months, with three-quarters expecting a rally on positive vaccine progress thanks to the impact of the US election.
Om Naratil, president of UBS Americas and co-president of UBS Global Wealth Management, said he was “encouraged” by the confidence shown by investors and business owners alike.
The decade ahead will present new opportunities, while geopolitical, economic and social challenges will remain, Naratil said.
The survey comes a day after the International Monetary Fund increased its expectations for global economic growth through 2021 to 5.5%, from 5.2% previously. Global GDP is then expected to rise by 4.2% in 2022, the IMF said.
The body said the increase reflected “expectations of a vaccine-powered strengthening of activity later in the year and additional policy support in a few large economies”.
Of the UK investors surveyed, 635 said they were optimistic about their region’s economic prospects in the next 12 months, with 50% expecting a return to normal by July.
A further 64% said they were positive on the UK stock market’s outlook, with 62% worried about the national debt.