Global Economy Update - December 2024

Global growth is expected to remain largely stable at 3.2% in 2024 and 2025, slightly below pre-pandemic levels.
Financial market volatility and geopolitical & trade uncertainties may pose challenges to growth.
Services demand remains healthy, while manufacturing lags, as reflected by global PMIs.
Global inflation is declining but is projected to remain above pre-pandemic levels in advanced economies.
Globally, monetary policy easing is underway, but fewer Fed rate cuts are now expected due to potential inflationary policies under Trump 2.0.
The US dollar index has surged by 7.8% in the past three months, pressuring emerging market currencies.
Global public debt is projected to reach ~99% of GDP by 2029.
US gross general government debt (~121% of GDP in 2024) and interest expenses have surged compared to pre-COVID levels.
China faces a structural slowdown compounded by geopolitical challenges.
India’s growth is set to moderate in FY25 but will remain the fastest growing economy.
Growth is slowing in western Europe, while PIGS economies are seeing a resurgence.
Africa region growth is projected to pick up modestly, though unevenly, amidst other macroeconomic challenges.