The global economy is experiencing resilient growth as it enters the second half of 2024. This growth is driven by falling inflation, better-than-expected employment, and robust private consumption. However, it is crucial to understand the potential challenges that could affect this growth. These include a still-high interest rate environment, possibly cooling down of the labour market, and growing political uncertainty.

In the first half of 2024, developed economies experienced steady but slow growth due to lower inflation, continued employment, and consumer spending, while interest rates remained high. There was positive growth in the US, leading to an upgraded real GDP growth forecast of 2.3% for 2024. In the Eurozone, the economy performed slightly better than expected, with lower inflation, increased exports, and more tourists visiting. However, it remains the weakest among major economies, with a projected real GDP growth of 0.9% in 2024 and 1.5% in 2025.

Real GDP growth forecasts for 2024 and 2025 stand at 4.2% and 4.1%, respectively, indicating that emerging and developing economies will continue to surpass advanced countries. However, the outlook for emerging economies is uncertain due to risks associated with a slowing global economy and ongoing domestic challenges. Despite efforts to stabilise the real estate market, the Chinese economy still grapples with weak property investment and sales and restrained consumer demand affecting private consumption.