Policy Center for the New South – The Global Economy is on a Two-Way Track

The global economy has proven more resilient than expected.

This is due to AI-driven growth offsetting the negative impacts of trade conflicts. However, inflated asset values and slowing employment growth could indicate potential challenges in maintaining this balance. Key findings include: Global economic growth has been more resilient than expected, with slight upward revisions in growth forecasts by the OECD. In the US, economic growth was supported by investments in artificial intelligence. In China, expansive fiscal policy offset the negative impacts of trade barriers.