240620 - Financial Forecast

Economic Growth

Global economic growth is expected to slow in 2024 compared to 2023, with projected GDP growth of around 3-4% globally. This is down from the 4-5% growth seen in 2023 as the post-pandemic recovery continues to moderate.
Growth in the United States is forecasted to be in the 2-3% range in 2024, down from the 3-4% growth in 2023. The Eurozone and other major economies are expected to see similar slowdowns in growth.
Key drivers of the economic slowdown include cooling consumer demand, tighter monetary policy from central banks to combat inflation, and continued supply chain disruptions in some sectors.
Inflation and Interest Rates

Inflation remains elevated globally, though it is expected to gradually decline through 2024 as central bank actions take effect.
The Federal Reserve and other major central banks are projected to continue raising interest rates through at least the first half of 2024 to get inflation under control. By late 2024, rates may start to level off or even decline slightly.
While the pace of rate hikes is expected to slow, borrowing costs for consumers and businesses will likely remain higher than pre-pandemic levels through the forecast period.
Stock Market Performance

After strong gains in 2023, stock market performance is anticipated to be more muted in 2024, with flat to modest positive returns expected.
Volatility may increase compared to 2023 as investors grapple with slowing growth, elevated inflation, and uncertain monetary policy.
Sectors like technology, consumer discretionary, and industrials may face more headwinds, while defensive sectors like healthcare and utilities could outperform.
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