Global Economic Outlook for December 2024

This technical report presents the Global Economic Outlook for December 2024, detailing key forecasts and economic trends across major economies. It outlines expectations for world growth, projecting a slight easing to 2.6% in 2025. The report highlights significant revisions in forecasts for the United States, eurozone, and China, with US growth raised to 2.1% and eurozone growth lowered to 1.2%. It discusses the factors influencing these changes, particularly consumer spending trends in the US, which remain robust despite earlier expectations of a slowdown. In contrast, eurozone households are becoming more cautious, with rising saving ratios reflecting concerns over job prospects. The report also addresses the impact of anticipated US tariff hikes on global economic dynamics, noting potential negative GDP effects across various countries. Additionally, it examines diverging monetary policy trajectories between the US Federal Reserve and the European Central Bank, contributing to fluctuations in the US dollar and inflation forecasts.