It became increasingly clear in the first half of 2024 that central banks had succeeded in taming inflation without tipping economies into recession. Economic growth has stabilised, aided by increased government spending.
Global economic output looks set to grow by about 2.7 per cent in 2024, down from 3.0 per cent last year. Nonetheless, labour markets remain tight and there is little slack in most economies. Growth is improving most rapidly in the euro zone, which is currently undergoing a mini boom. Real disposable incomes are rising as wage growth is high and inflation is falling. These conditions have enabled the European Central Bank (ECB) to begin cutting rates, lending further support.
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