Gwyther: Global growth robust as spending cycle hits multi-decade high

The outlook for global growth remains robust thanks to one of the biggest investment spending cycles for several decades.

The IMF expects investment spending to expand by over 12% per annum for the next five years and it will soon account for 25% of global GDP. Most of the investment is taking place in emerging economies which, in the short term, is causing growing pains. Progress has been uneven: while China and Korea have been raising interest rates and increasing bank reserve requirements for over six months, India is still some way behind. Inflation and the threat of further tightening remain the key risks not just for local markets but also for any companies tapping into this structural growth opp...