In 2023, major headwinds faced the global economy, from soaring inflation and aggressive central bank tightening to wars in Europe and the Middle East and a festering property crisis in China that stunted its economic growth. Despite all of these negative factors, the post-pandemic global recovery managed to flourish. However, there are several developments that could provide direction for the global economy this year.
Last year, the U.S. economy defied expectations for a recession as consumers kept spending, prompting many economists to ditch their downside scenarios and forecast a soft landing. Also, China’s economy came close to government expectations, despite its ongoing property crisis, as the booming electric vehicle industry and heavy doses of government stimulus kept its economy afloat. The International Monetary Fund (IMF) forecasts global growth of 2.9% in 2024, a touch below its 3.0% estimate for 2023.
