The quarterly survey of institutional investors found that 45% expected positive global growth over the next three-to-five years, signalling a 13% increase on the end of 2016.
However, the survey found investors were divided over how to allocate capital in the UK.
The number of people who said they would increase their exposure to UK financial assets rose by 3% to 16%, while the amount of people who suggested they will reduce their UK holdings was 20%, a rise of 2% on the previous quarter.
Michael Metcalfe, head of global macro strategy at State Street, said: “It is testimony to the continued level of uncertainty over Brexit that the opinion amongst these respondents is getting more divided not less as the deadline nears.”
He added that the number of outcomes regarding the Brexit deal had widened following the UK snap general election, with heightened chances of both a ‘soft brexit’ or even a no deal among the possible results by March 2019.
Bill Street, head of investments for EMEA at State Street Global Advisors, said: “Policy uncertainty will likely remain elevated due to political shifts globally. In fact, the Global Economic Policy Uncertainty Index is higher than during the global financial crisis and Brexit remains a significant source of this uncertainty following the UK’s hung parliament vote in June.”
