What are the implications of macro risks for global real estate investment?
Notwithstanding political risks or the overhang of government deficits, 2013 may mark the beginning of the post–credit crisis era for Europe, the United States and Asia Pacific. Europe appears to be stabilising, with the region reporting its first quarter of positive growth after witnessing six quarters of contraction. The United States has quickly seen the economic debate shift from concerns over sequestration, to the timing and pace of QE tapering now that growth momentum is improving. Regime change is affecting the Asia Pacific region, slowing growth in China and affecting other countries in the region. However, recent economic data releases are showing a positive trend.
Meanwhile, Japan has brought some upside to both the Asia Pacific as well as the global economy. Indeed, many economists believe world economic output is likely to expand at a faster pace in 2014.
While we remain optimistic on global economic growth relative