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Global outlook improvement is supported by stronger major economies - African Manager

Global outlook improvement is supported by stronger major economies - African Manager
At the beginning of the year, strong headwinds set a pessimistic tone in outlining global growth expectations for 2024. The Bloomberg survey consensus is

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Global Growth Expectations for 2024 Improve as Major Economies Show Positive Developments

A recent Bloomberg survey has revealed that the expected pace of expansion in the world GDP for 2024 has improved, with a consensus of 2.6%. This is a positive shift from the initial outlook, which was more pessimistic due to various economic challenges. The survey tracks forecasts from analysts, think tanks, and research houses, and shows that the global economy is on a path of recovery.

The US economy has seen a remarkable upward trajectory in its growth projections, with data indicating that the economy is standing on firm footing. The GDP figures for Q1-2024 showed significant growth in consumption of services, leading to an upward revision of growth expectations for the US economy in 2024.

China's economic outlook has also improved, with data releases surprising to the upside. New government stimulus measures and policy initiatives have contributed to the positive momentum, leading to expectations of further positive revisions in China's GDP growth.

The Euro Area is undergoing a mild recovery, with GDP expanding in Q1-2024 and several factors providing confidence to upgrade growth forecasts. The combination of falling inflation with high wage growth and the beginning of a policy rate reduction cycle by the European Central Bank (ECB) are expected to support the economy.

Overall, the outlook for the global economy for 2024 has improved, with the expected pace of expansion standing at a safe distance from the recessionary range. The positive developments in the three major economies - the US, China, and the Euro Area - have contributed to this improvement.