According to EIU’s June 2024 Global Outlook video, Tom Rafferty, head of global forecasting and economics, and Steven Leslie, global principal economist, discussed the US economic outlook. Despite dealing with stubborn inflation and high interest rates, the US economy has shown resilience in 2024. The Federal Reserve (Fed) aims to cool the economy and reduce inflation, with a target set at 2% while the current rate remains above 3%.
EIU predicts a GDP growth of 2.2% for this year and 1.8% in 2025. However, uncertainties exist as according to EIU’s core forecast, the Fed is likely to cut rates in September and December of this year. The possibility of the Fed maintaining rates or even raising them due to persistent inflation cannot be ruled out. Unforeseen events like past pandemics and international conflicts could also have unexpected impacts on economic outcomes.
The US economic outlook is expected to affect the upcoming US elections but not as much as previous years. EIU predicts a narrow reelection for Biden due to his strong record on economic growth and employment rates. However, factors such as inflation and rising prices for essential goods will influence voting patterns. Non-economic issues like immigration debates are also gaining prominence among voters.
The insights and forecasts provided in this video are part of EIU’s Country Analysis service which offers in-depth global perspectives on the political and economic status of nearly 200 countries. This comprehensive solution helps organizations identify potential opportunities and risks in various regions by providing an analysis that takes into account multiple factors affecting each country’s economy.
In conclusion, despite facing challenges such as inflation
