🚨 GLOBAL GROWTH HICCUP — CHINA BOOST EXPECTED BUT RISKS REMAIN 🚨
New data and outlooks show global real GDP growth for 2025-27 has been revised upwards slightly, particularly for China (to ~5.0% in 2025) — but the optimism comes with a big “however”.
While improved, the growth landscape is still fragile with multiple cross-currents: consumer confidence slipping in the U.S., inflation sticking, and policy-supports less sure.
📉 Why markets should care
Growth revisions help sentiment, but they don’t guarantee momentum if policy support falters. With risk assets already priced for strong growth + easy money, any hint of weakness becomes magnified.
✅ What you should do
Don’t buy growth optimism blindly — check policy and earnings support.
Rotate into sectors/geographies less dependent purely on upside growth (e.g., value, defensive, dividends).
Monitor China data, U.S. consumer/labour trends, and global trade flows — one surprise can trigger a rerate.