Commodity Trading Advisory reposted this
🌍The G7 #economies (#Canada, #France, #Germany, #Italy, Japan, the United Kingdom and the United States ) have been better able to corral inflation than the global average, the data shows. Inflation in these countries, which jumped sharply in 2022, has been on a downward path since. ➡️It’s projected to stabilize at about 2% by 2025, in line with central bank targets. Simultaneously, #GDP growth is both modest and sunken among the G7, at around 2% still, although world GDP growth is slightly more attractive, riding on the backs of stronger recoveries in the emerging world. 📈Inflationary Pressures Easing ➡️After the pandemic, inflation surged for the world #economy, a situation heightened by the strain on supply chains and geopolitical stress. But new data show a cooling picture. Generalized inflation, which peaked above 8% globally in 2022, expects to fall smoothly below, but continue above, G7 levels on a trend basis in the coming years. A Delicate Balancing Act ➡️The G7 is certainly weathering economic turbulence, but it’s not out of the woods yet. The risks of stagnation due to tight monetary policies, #geopolitical uncertainties, and volatile energy markets remain valid and may still affect growth. ➡️Economists caution that though inflation seems to be coming under control, banks must be careful about making any changes to interest rates too soon, as easing too soon could, once again, re-inflame inflationary pressures. 🧐A Brighter Economic Outlook? 💰The #IMF’s projections offer some cautious optimism that the world’s major economies are approaching a period of stability. The G7’s success in keeping inflation contained as it continues to grow at a steady pace indicates that it has had success with its economic policies. ➡️Yet economic systems in the years ahead will be rocked by systems, from the global financial rebalancing most visible in debt levels to changes in slugging in labor markets and disruptions in #trade. ➡️The road to recovery may be smoother for the world’s most advanced economies for now — but, experts say, vigilance is critical to ensure they achieve sustained economic stability. Written by : Nour Zeghdoud
