According to a macroeconomic report by Nordea bank strategists, developed economies are in transition, with high inflation returning to its target and growth recovering.
The report covers the economic outlook for the Eurozone, the US and China, as well as the main policies of central banks. Here are the main conclusions:
Transition phase
“We are still in a transition phase in the major economies. We continue to expect to see slightly weaker labor markets, inflation approaching the 2% target and interest rates slowly falling in both the US and the rest of the world. the eurozone, combined with slightly higher economic growth in Europe but somewhat lower in the US. None of these things have clearly materialized yet, but data releases and central bank comments during March continue to point to that address.”
“The US labor market continues to show strong job growth, but not as much as previously thought, with January's very high figure revised downward. Job growth is supported by a growing workforce and indicators continue to point to a slight relaxation of pressure in terms of job vacancies.”
“The European Central Bank is giving clear signals of its intention to cut rates in June. The bank appears confident that inflation is moving in the right direction, and that impression was largely supported by preliminary figures for March. However, He remains concerned that wage growth could be an obstacle to sufficiently low inflation, and euro zone wage data for the first quarter will not be available before the ECB's rate decision on April 11. Hence the comment of Lagarde, President of the ECB, that “we will know a little more in April, but we will know a lot more in June”.
“China published a GDP growth target of 5.2% for 2024. This is the same growth rate as last year, but actually quite ambitious, since that growth rate occurred in the context of a very weak 2022 , with extensive COVID lockdowns. Therefore, we expect to see significant policy stimulus to Chinese growth this year.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
