Economic growth is an increase in the quantity and value of goods and services produced by an economy in one period compared to another. This increase is inflation-adjusted and most commonly measured in real GDP (Gross National Product).
A country’s productivity can be influenced by many factors, both on a national level and internationally within the global market. Some of the main influences include growth in physical stock, an expanding labour force, advances in technology, and an increased consumer demand.
Analysis of economic growth can determine where a country is in the market cycle. When an economy is growing sustainably, it is in the expansion phase. This spurt of production activity means business sales are increasing. This can sometimes be accompanied by a bull market in stocks, and a bear market in bonds.
As one of the UK’s leading investment managers, LGIM offers knowledge and experience that can bring real benefit to investors looking to understand policy and politics affecting economic growth.
Find the latest research on economic growth rates and the key factors to sustainably driving economic growth.
Our Asset Allocation team includes dedicated and accomplished US, European and Global economists, whose focus is to assess the macroeconomic environment in the developed world. This includes researching government policy, emerging political trends, as well as the outlook for economic growth and inflation. Our economists then work with our team of strategists and portfolio managers to translate their views into what this means at a portfolio level.
We maintain our long-term positive bias on India. The stress in the shadow bank sector will eventually blow over and Prime Minister Modi still has a lot of political capital to push reform. However, while we previously sought to buy on dips, these dips now have to be deeper to entice us.
The manufacturing mini-cycle downturn might be about to end, with the current industrial recession out of sync with the fundamental anchors of retail sales and financial stress. History suggests the manufacturing sector tends to overshoot but will eventually be dragged back up.