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    Multi-asset chart of the week

    Multi Asset chart of the week

    25 March 2025 Multi-asset
    Week to 28 March 2025

    Upward revisions for longer-term German growth forecasts

    Stephanie Chan, Portfolio Manager, said: “In recent weeks, economists across Wall Street have revised up their expectations for German real GDP growth in 2026 and 2027. The more optimistic growth projections are likely a result of new fiscal stimulus out of Germany – the German Parliament recently passed legislation approving increased deficit spending. This is a historic change in Germany fiscal policy which for many years favoured a balanced fiscal budget rather than deficit spending. Growth estimates for 2025 moderated as estimates for 2026 and 2027 improved, as it will likely take time for the impact of expansionary fiscal policy to feed through into hard economic data.”

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    Source: Bloomberg and Insight Investment as at 24 March 2025.
    Week to 21 March 2025

    US economic policy uncertainty at historical highs

    Stephanie Chan, Portfolio Manager, said: “The US economic policy uncertainty index has reached new highs not seen since the Covid pandemic in 2020. The uncertainty is likely related to new tariffs, both actual and threatened, placed by the US on trade partners such as Canada, Mexico, Europe, and China. These countries and regions have also planned retaliatory measures against the US. Furthermore, there is uncertainty around US domestic fiscal policy and the Fed’s monetary policy. The specific path forward for both fiscal and monetary policy will depend on the trajectory of US growth and inflation. Markets, in turn, are experiencing a pullback as they digest headlines around tariffs and consider the broad implications on trade and global growth.”

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    Source: Insight Investment and Bloomberg as at 16 March 2025.
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