Shifting expectations

No respite from US inflation and geopolitical tensions

Despite the most aggressive and coordinated monetary policy tightening in decades, the global economy’s strength has surprised many economists. The US economy, in particular, has demonstrated greater resilience than initially anticipated. The latest World Economic Outlook (WEO) of the International Monetary Fund (IMF), released this week, expects the global economy to grow by 3.2 per cent in 2024, 10 basis points higher than its January update. The US economy is expected to expand by 2.7 per cent in 2024, 60 basis points higher than the January projection. The projection for the euro area, however, has been lowered by 10 basis