Banking News

Business Banking Outlook 2024 – Global Economy in Focus

(15 December 2023 – Global) Global growth is set to remain subdued as a direct result of monetary policy tightening, weak trade and lower business and consumer confidence being increasingly felt, according to the Organisation for Economic Co-operation and Development’s (OECD) latest Economic Outlook.

The OECD projects global GDP growth of sub three percent for 2023, slowing down mildly to 2.7 percent in 2024 before swinging above three percent in 2025. Asia is expected to continue to account for the bulk of global growth in the next 12 to 18 months. 

Geopolitical tensions remain a key source of uncertainty. Amid heightened geopolitical tensions and a longer-term decline in the trade intensity of growth, the anticipated cyclical pick-up in trade growth could fail to materialise. On the upside, stronger consumer spending could push up growth if households make greater use of the savings accumulated since the pandemic, though this could also increase inflationary pressures. 

“The global economy continues to confront the challenges of both low growth and elevated inflation, with a mild slowdown next year, mainly as a result of the necessary monetary policy tightening over the past two years. Inflation has declined from last year’s peaks. We expect that inflation will be back at central bank targets by 2025 in most economies” commented OECD Secretary-General Mathias Cormann. 

“Over the longer term, our projections show a significant rise in government debt, in part as a result of a further slowdown in growth. Stronger efforts are needed to rebuild fiscal space, also by boosting growth. To secure stronger growth, we need to boost competition, investment and skills and improve multilateral co-operation to tackle common challenges, like reinvigorating global trade flows and delivering transformative action on climate change” Cormann added.

Utilising East & Partners’ ongoing global primary voice of the customer intelligence and analytics, the 2023/24 Outlook offers a clear and evidence-based indication of what may lie ahead. Helping equip banking and finance leaders with a greater understanding of what lies behind today’s complex markets, enabling them to develop more robust strategies focused on the ultimate goal of sustainable growth.  

The intelligence of decision makers, by decision makers - download your free copy of East & Partners Outlook now. 

"Major inflection points in recent years have had, and are still having, a dramatic impact on how the financial services sector is evolving” - East & Partners Global Head of Markets Analysis Martin Smith.