AMP & Econosights – The global economy in 2024

Global growth in 2024 is expected to be around 2.5%, below the long-run average of 3%, with risks of over-tightening from major central banks. The IMF predicts higher growth at 3.1% for 2024. Economic growth in 2023 was weaker compared to 2021, especially in Europe and some emerging markets. Purchasing Managers Indices have been trending up since late 2023, indicating better conditions for manufacturing and service firms and a positive outlook for global growth. The US economy remains a key player in global growth, with strong consumer spending and contributions from government and private business investments. Despite interest rate hikes, the US economy saw growth of 3.3% in the December quarter of 2023. Expectations for the March quarter of 2024 are at 3.4%. US economic strength is closely watched as a barometer for the rest of the world through demand and financial market channels.