Goldman Sachs: Global economy will perform beyond ‎expectations in 2024‎

Goldman Sachs expressed optimism that the global economy will exceed expectations in 2024, driven by strong income growth and confidence that the worst of interest rate hikes is already over.

The most famous banking institutions in the United States, according to CNBC, expected that the global economy would grow by 2.6% next year on an annual average basis, which is higher than the expectations of economists surveyed by Bloomberg.

Goldman said that the United States is expected to outperform other developed markets again, with growth estimated at about 2.1%.

Goldman also believes that the bulk of the challenge resulting from tightening monetary and financial policies has passed

Goldman ruled out that policymakers in developed markets would cut interest rates before the second half of 2024 unless economic growth is weaker than expected.

The investment bank indicated that inflation also continued to slow in the G10 economies and emerging markets, and that it is expected to decline further.

Meanwhile, the investment bank also expected global factory activity to recover from the recent recession as headwinds are expected to dissipate this year. Goldman noted that global manufacturing activity has been affected by a weaker-than-expected recovery in Chinese manufacturing and the European energy crisis, in addition to an inventory cycle that had to correct overbuilding last year.