Weaker annual real GDP growth rates are forecast across the largest regions in 2024 compared to 2023, according to a new S&P Global Market Intelligence report released in January. The “Top 10 Economic Predictions for 2024” forecasts global real GDP will expand at 2.3 percent in 2024, down from an estimated 2.7 percent in 2023, with relative strength in some regions, including Asia-Pacific, helping avert a global hard landing. In the report, S&P Global Market Intelligence’s economists outlined their predictions for global and regional economic performance, and central bank monetary policy and highlighted key economic market trends and risks.
“The downward trend in inflation, which had stalled in mid-2023, has resumed and is expected to continue through 2024, consistent with rebalancing supply and demand,” said Ken Wattret, global economist, S&P Global Market Intelligence.
As confidence builds that consumer price inflation rates will return to target, central bank policy rate cuts are forecast across advanced economies during 2024.
“Monetary policy pivots look increasingly likely during the first half of 2024,” said Wat- tret, “although recent market expectations of around 150 basis points of rate cuts in the US and eurozone over the year as a whole look somewhat overdone.”
Other Top 10 predictions include:
• Central bank easing cycles are already well under way in many emerging economies and rate cuts are forecast to become more widespread during the first half of 2024.
• Mainland China’s economy will be supported by a more accommodative policy, a gradual improvement of private-sector confidence, and an expected bottoming out of the housing market downturn.
• The US dollar will depreciate, consistent with weaker US growth, narrowing interest rate differentials, and the persistent large current-account deficit. The yen is expected to appreciate more against the US dollar than many of its peers as tightening Japanese monetary policy bucks…
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