Chart is for illustrative purposes only. Past performance is not necessarily an indication of future results.
The global economy remained resilient this past year during a time of pronounced policy and tariff uncertainty, as well as geopolitical tensions. Yet, fiscal support, monetary easing and strong capital expenditures helped economies deliver positive growth.
A key measure of economic conditions, the Global Composite Purchasing Managers’ Index (PMI), a weighted average of the global manufacturing and services PMIs, provides a snapshot of overall worldwide economic health. A reading above 50 indicates economic expansion, while a reading below 50 suggests a contraction. This metric is at its highest since August 2024 and underpins our positive outlook for global growth as we head into 2026.
A strong global economy is important to investors because increased economic activity could lead to higher corporate profits, potentially boosting stock prices. It is one of the reasons we maintain a constructive view on equities and why we believe diversification across regions remains important.
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