Global economic activity will improve in 2017, said an HSBC Global Asset Management report issued on Monday.

"Trumponomics", the cooperation of fiscal and monetary policy, improving global economic activity and continuing low interest rates, will be four key themes shaping the macro environment in 2017, it said.

Following "Trumponomics," market perceptions of risk have shifted towards the scenario of a "strong demand recovery", driven by expectations that Trump will implement more growth-friendly policies, and the era of "deflation dominance" is likely over, the report said.

There will be more cooperation of fiscal and monetary policies. The world is moving towards an "end of austerity" with fiscal authorities shifting to greater coordination with central bankers. Yet various monetary measures including negative rates and quantitative easing programs still mean that global liquidity conditions will remain highly supportive for growth, it said.

Global economic activity will improve this year. While Asia remains a dynamic region in the world and continues to be a key driver for global growth, there are also clear signals that growth momentum is picking up across major economies including the United States, Britain and the eurozone, the report said.

Interest rates will continue to be low. Despite the Fed's signal of a rate hike cycle in 2017, investors are likely to continue to face a low interest rate environment with any increases being quite gradual,it said.