Global Economic Surge Amid US Resilience and Trade Policy Uncertainties

Global economic growth appears set to remain strong next year, buoyed by resilient U.S. performance and interest rate cuts by major central banks. However, the upcoming U.S. election introduces potential trade policy changes that could affect this growth. Inflation rates have declined significantly, aligning with central banks' targets.

Global economic growth is anticipated to maintain its robust trajectory through next year, propelled by the United States' resilient economy and interest rate reductions from major central banks. A Reuters poll involving approximately 500 economists indicates this outlook, though the hotly contested U.S. presidential election could shift trade dynamics and affect growth projections.

Economists have significantly upgraded their forecasts for 2024 global growth, mainly due to the unexpected vigor of the U.S. economy. Inflation rates have sharply decreased, allowing most major central banks to manage price pressures effectively, close to their targets.

The world economy's growth rate is projected to average 3.0% next year, following robust consumer spending-driven U.S. economic expansion. While the Chinese economy faces challenges, other Asian regions, including India, show strong growth potential. However, trade policies, particularly proposed U.S. tariffs by the Republican candidate, present potential risks to global economic stability.

(With inputs from agencies.)