Despite a topsy-turvy geopolitical environment, the global economy is returning to normal, according to Citigroup Global Wealth’s newly appointed interim chief investment officer, Steven Wieting. With one minor caveat: the AI revolution is now in full swing. That change has resulted in numerous unexpected investment opportunities, according to Wieting, who cited Citi’s latest semi-annual Wealth Outlook published today, the first since his predecessor, David Bailin, departed earlier this year.
Aligning with Citi’s relatively optimistic forecasts last year, the latest Citi Wealth Outlook predicts global GDP will increase in China, the U.S., the EU, and the UK. Global GDP is expected to increase by 2.6%, the same level it grew by last year, though less than in 2021 and 2022, when GDP grew by 5.9% and 3.3% respectively. The European Central Bank and the Bank of England are expected to be first to cut interest rates next year, followed by the Federal Reserve. Reiterating his predecessor’s prediction from last year, Wieting says that inflation will fall to 2.5% next year, a level not seen since February 2021.
