Low Growth Here To Stay


    The low growth, low rate world is here to stay, driven by secular forces that have shaped the global economy and tempered its growth for four decades, says Vanguard’s ‘2017Economic and Market Outlook.’Its view is that the seminal themes of globalization, the demographic headwinds of an aging global workforce, and rapid advances in technology are the pervasive structural economic drivers over the long term. It, however, rejects the persistent myth of economic stagnation and believes the world is adjusting to the disruption of structural deceleration. “The extremes that we are bombarded with each and every day ‒ negative income rates, Brexit, and income inequality ‒ may seem like isolated events, but we know that they are inextricably linked by these secular forces,” says Joseph Davis, Vanguard’s global chief economist and head of its investment strategy group. “Perhaps most significantly, we are focused on the changing tides of technology and a gig economy. This is a significant disruptor, yet the global economy has a remarkable ability to adapt to change. We anticipate muted, but enduring and positive economic growth in the years ahead.”