Global Economic Outlook: Slow Motion
The Northern Trust Economics team shares its outlook for major markets in the months ahead.
Despite strong headwinds, the global economy has continued to expand. But an economic divergence has developed. The U.S. and Japan have exhibited unexpected strength; China, which was anticipated to drive global growth this year, is struggling. And Europe is somewhere between these extremes.
With inflation trending down, real incomes are set to turn positive in most economies, which will boost purchasing power. However, loosening labor market conditions could constrain the capacity to splurge. In some countries, the bite of higher interest rates is taking a noticeable toll. The “higher for longer” interest rate environment will result in a sustained period of below-trend growth.
Here are our up-to-date perspectives on how major economies are poised to perform during this year and next.