Chance of Global Economy “Soft Landing” Improving – G20
(29 February 2024 – Global) The global economy has an improving chance of achieving a soft landing according to G20 finance heads in Brazil, citing quickening disinflation as a major upside risk.
The joint G20 finance chiefs statement reflects growing optimism towards a stagnant global economy that’s struggled to overcome the impact of the pandemic, persistent inflationary pressure and a rapid monetary policy tightening.
The International Monetary Fund (IMF) ratcheted up its forecast for global economic growth in 2024 to 3.1 percent based on a better-than-expected expansion in the US and concerted Chinese fiscal stimulus.
“The world is set up for a soft landing. The market certainly perceives there’s a very, very high delta to a soft landing. My own view is it’s a little bit more uncertain than that” stated Goldman Sachs CEO David Solomon.
“Business chiefs tell me that with prices still high, a pattern of tightening in “paycheque-to-paycheque” spending behaviours has emerged. I just think we’re operating pretty well, but just with a higher level of uncertainty than the market is pricing in,”
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