emerging
Global Growth Stabilization
Global economic growth is projected to stabilize at a moderate pace of 3.2% in both 2024 and 2025, supported by easing inflation, improving real incomes, and less restrictive monetary policy.
Timeframe
near-term
Categories
Subcategories
Impact areas
Detailed Analysis
Despite diverse growth patterns across countries, the global economy has shown resilience. The report projects this stability to continue, driven by factors such as declining inflation bolstering consumer spending and the gradual easing of the lagged impact of monetary policy tightening. This projected stability offers a relatively benign outlook, although significant downside risks remain.
Context Signals
Growth variations between countries like the US, Germany, and China
Impact of monetary policy on interest-rate-sensitive expenditures
Correlation between real income growth and private consumption
Edge
Potential for a stronger-than-projected growth if consumer confidence rebounds more significantly than anticipated.
Possibility of further declines in oil prices leading to faster disinflation and monetary policy easing.
Need for structural reforms to enhance long-term growth prospects and address fiscal challenges.
