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Investment professionals in the Middle East appear to be less confident about economic recovery compared to their global peers, according to a new research released on Monday by CFA Institute.
Only about a quarter (25 percent) of investment professionals polled in the region said they believe their economy is already on a steady path to recovery, compared to 36 percent in the United States and 36 percent in South Asia.
“In general, emerging economies appear to be less optimistic,” CFA said.
The investment professionals group polled its members to analyse the effects of the current economic crisis caused by the COVID-19 outbreak on the financial markets and the investment management industry.
Among the 6,040 respondents polled, many feel that some economies will recover faster than their counterparts, while others will lag behind, with 44 percent predicting a K-shaped recovery.
“The K-shaped recovery marks a distinct shift away from the hockey-stick shaped recovery predicted last year, when close to 75 percent of respondents thought that any upturn would be slow or stagnant in the short term, before picking up in the medium term,” CFA said.
About a third (32 percent) also believe that the economy is on a steady path towards fully recovering and operating at a pre-pandemic pace within the next one to three years.
The recovery in China is believed to be ahead of most markets, with respondents in the Asian state (39 percent) expressing more optimism.
“Elsewhere, further analysis suggests that specific regions appear to be less optimistic than others,” CFA said.
As of April 2021, the International Monetary Fund (IMF) expected the UAE’s economic growth to be around 3.1 percent, an improvement from 1.2 percent predicted last October.
(Writing by Cleofe Maceda; editing by Seban Scaria)
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