A further break of links between unemployment and inflation may be on the cards next year, helping economies such as the UK and US to outperform, according to L&G.
Its latest top-down analysis of the state of the UK and global economies suggests services-based economies, like the UK, are going to be increasingly able to charge more for their output relative to manufacturing-based economies, which may experience deflationary pressures building up. Essentially this means where the UK will be able to keep charging more for its services-based output, countries such as China will face increasing competition and falling prices. The gap between the two types of economy will widen as time moves on. Julien Garran, L&G Investment Management chief strategist...
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