As vaccine rollouts accelerate, we expect GDP growth to hit 5.7% in 2021, the fastest expansion rate since 1973; this is somewhat flattered by the low starting point stemming from the steep decline of 2020.
The policy backdrop remains supportive in both fiscal and monetary terms, but change is likely to slowly begin over the course of the year as countries transition from COVID stimulus measures.
Emerging Markets Outlook
Although set for GDP growth in excess of 6% in 2021, the EM outlook is somewhat muted relative to its own history — reflecting the challenges related to COVID-19 and vaccine deployment.
The robustness of global manufacturing provides a positive tailwind for EM, even if the benefit is not uniform across countries. This will help offset the need of some countries to begin withdrawing monetary and fiscal policy support.
Global Capital Markets
Signs of froth exist in some parts of the economy and financial markets, but in our view they are not widespread enough to derail the powerful economic growth associated with economies reopening with ample policy support.
The most likely path for interest rates continues to be to the upside; however, reflexive investor and central bank behavior is likely to limit the pace of future moves.
Before investing, consider the funds' investment objectives, risks, charges and expenses. To obtain a prospectus or summary prospectus which contains this and other information, call 1-800-997-7327, download a prospectus or summary prospectus now, or talk to your financial advisor. Read it carefully before investing.
Distributor: State Street Global Advisors Funds Distributors, LLC, member FINRA, SIPC, an indirect wholly owned subsidiary of State Street Corporation. References to State Street may include State Street Corporation and its affiliates. Certain State Street affiliates provide services and receive fees from the SSGA Funds.
THIS SITE IS INTENDED FOR U.S. INVESTORS ONLY.
No Offer/Local Restrictions
Nothing contained in or on the Site should be construed as a solicitation of an offer to buy or offer, or recommendation, to acquire or dispose of any security, commodity, investment or to engage in any other transaction. SSGA Intermediary Business offers a number of products and services designed specifically for various categories of investors. Not all products will be available to all investors. The information provided on the Site is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation.
All persons and entities accessing the Site do so on their own initiative and are responsible for compliance with applicable local laws and regulations. The Site is not directed to any person in any jurisdiction where the publication or availability of the Site is prohibited, by reason of that person's nationality, residence or otherwise. Persons under these restrictions must not access the Site.
Information for Non-U.S. Investors:
The products and services described on this web site are intended to be made available only to persons in the United States, and the information on this web site is only for such persons. Nothing on this web site shall be considered a solicitation to buy or an offer to sell a security to any person in any jurisdiction where such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction.