Growth of the global economy accelerated marginally in the second quarter of 2024, according to data from Oxford Economics.
After growing 2.7% in the first quarter, global gross domestic product (GDP) increased 2.8% in the second quarter of 2024.
While advanced economies grew 2.0%, compared to 1.3% in Q1 2024, emerging market growth slowed to 3.9% from 4.6 percent.
According to International Monetary Fund (IMF) projections, after growing 3.3% in 2023, the global economy will grow 3.2% in both 2024 and 2025.
This trend is set against a backdrop of inflationary pressures and the complex resolution of post-pandemic economic disruptions.
Growth of the global economy
Central banks around the world continue to walk a fine line of monetary tightening, adjusting interest rates to curb inflation while trying to mitigate the impacts on domestic economies.
The U.S. dollar index, after experiencing volatility in 2022, maintained a relatively stable performance throughout 2023, with minor fluctuations reflecting ongoing economic uncertainties.
U.S. Gross Domestic Product (GDP) grew 3.0% in the second quarter of 2024, on an annualized basis. This increase exceeded the 1.4% increase recorded in the first quarter. In addition, business equipment spending was stronger than expected. At the same time, consumer spending also exceeded initial forecasts.
On the other hand, China‘s economy showed a slowdown in the second quarter of 2024. Growth fell to 4.5%, on an annualized basis, after reaching 7.6% in the first quarter. Although the government introduced fiscal stimulus measures, these did not achieve the expected results. At the same time, goods exports grew significantly. But consumer spending remained weak.
Global GDP
Goldman Sachs reported that the global economy recorded growth in 2023. However, it faced ongoing challenges due to macroeconomic and geopolitical concerns. Throughout the year, concerns about persistent inflation and the economic outlook dominated the outlook.
However, these concerns gradually began to subside. On the one hand, inflationary measures showed progressive improvements. On the other hand, expectations of a soft landing for the U.S. economy increased. This optimism was supported by the slowdown in monetary policy tightening. Both factors contributed to bolstering market confidence.