The global economy is projected to outperform again in 2024, according to research from Goldman Sachs.
“This is an important insurance policy against a recession,” says chief economist Jan Hatzius, Goldman Sachs Research.
- The outlook is based on economists' prediction for income growth (amid cooling inflation and a robust job market).
- Rate hikes have already delivered their biggest hits to GDP growth, which means manufacturing will recover.
- Central banks, meanwhile, will have room to reduce interest rates if they're concerned about the economy slowing.
- Worldwide GDP is forecast to expand 2.6% next year on an annual average basis, compared with the 2.1% consensus forecast of economists surveyed by Bloomberg. In fact, Goldman Sachs Research's forecasts for GDP growth in 2024 are more optimistic than the consensus for eight of the world's nine largest economies, as of Nov. 8.
- Economists expect U.S. growth to outpace its developed market peers again.