Global Economic Update
The Weekly Global Economic Update highlights key issues in the U.S. and international markets:
1. U.S. Budget Deficit: The deficit remains high at 6.7% of GDP in FY2024, driven by government spending. Concerns persist, but the strong U.S. dollar and demand for U.S. debt provide a buffer.
2. Federal Reserve Policy: The Fed continues to ease rates, aiming to stabilize inflation. Productivity gains in the service sector help offset wage inflation, reducing overall price pressures.
3. Eurozone Recovery: The Eurozone economy is rebounding, with GDP growth at 0.4%. Inflation is easing, but persistent service costs remain a concern.
4. Trade Tensions: Germany resists EU tariffs on Chinese EVs, fearing trade backlash, while Mexico grows as a central player in U.S.-China trade dynamics.
The global economic outlook remains mixed, with key regions facing unique challenges. Continued monetary adjustments, strategic trade policies, and proactive fiscal management will be crucial to sustaining recovery and managing inflationary pressures.
Source: Weekly global economic update. (2024, November 12). Deloitte Insights.
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