“If you had asked me back in February, I would have taken a much more pessimistic view of the war’s impact on the global economy. But that would have underestimated the resilience global economies have shown, which has been quite impressive,” says Chao.
Despite facing various forces of disruption — including geopolitical fractures, the closure of the Strait of Hormuz, disruptions to energy and commodity supplies, and the rise of AI — global market resilience has endured. This presents a favourable investment environment in the coming months, according to Invesco.
At its 2026 Midyear Investment Outlook seminar, David Chao, Invesco global market strategist for Asia Pacific, says the firm held an optimistic view of global growth, inflation and central bank policy at the start of the year. This outlook, however, was disrupted by the outbreak of war in the Middle East, which pushed inflationary pressures higher.
