In its latest forecasts, KPMG predicts that global economic growth will drop from 2.7% in 2023 to 2.5% in 2024 before picking up to 2.7% in 2025. Although it will take longer for pricing pressure to allude in many nations, the study reveals that inflation will continue to decline. With almost half of the world’s population already registered to vote or planning to do so this year, geopolitical uncertainty is high. The escalation of trade disputes and hot wars may lead to an increase in isolationist policies. More frequent episodes of inflation and aggressive monetary policy are the following risks. 

The UK and the Eurozone emerged from recessions in the first quarter of this year. Several factors that will persist into the year’s second half contribute to the improved morale. Since the beginning of the year, inflation has returned to normal, but pay growth is still high, and European labour markets are still relatively tight. Real household incomes will progressively rebound over the second half of this year, encouraging consumer spending. 

Looking at Latin America, the KPMG forecast predicts GDP will grow by 2.6% year over year in 2025, following a weak 1.6% growth in 2024. While countries like Argentina, Mexico, and Brazil are driving the downturn this year, Andean economies like Chile and Peru will outperform in the region in 2024 due to strong copper prices for producers, lower domestic inflation, and lower interest rates.