"Sunny With A Chance Of Rain": A Look Inside Morgan Stanley's Mid-Year Outlook

By Vishwanath Tirupattur, global head of Quantitative Research at Morgan Stanley

We published our mid-year global economics and strategy outlooks last Sunday, and the more detailed asset class and country-specific outlooks have been trickling out during the week, with more to follow. As our loyal readers are well aware, twice a year we step back from the daily grind of the markets and visualize how economies and markets evolve over the course of the next 12 months. As always, these outlooks are the culmination of a process involving much deliberation and spirited debate among economists and strategists across all the regions and asset classes we cover. We are convinced that in a highly interconnected world facing numerous uncertainties, challenging each other’s views makes the final product much stronger. In this Start, we will outline the key takeaways from our mid-year outlook and discuss some of the key debates we engaged in along the way.

Our economists envisage stable growth, moderate disinflation and policy easing in most DM economies ahead.