It is difficult to predict the state of the economy five years in advance, but some trends are likely to persist and inform our collective economic outlook in 2024.
Inflation is expected to remain low in most developed economies due to a combination of slow wage growth and technology-driven productivity gains. Interest rates are forecast to remain low as well, as central banks remain reluctant to raise rates significantly as long as their economies remain fragile.
The housing market is likely to stay strong as more younger buyers enter the market, driven by high levels of household debt, low interest rates, and an increasing number of millennials becoming first-time buyers.
The labor market is expected to continue expanding, with demand for workers rising in many different industries, including technology, healthcare, retail, and education.
Moreover, economic growth is forecast to continue in the next five years, facilitated by continued progress in digitalization and automation, increased global trade, and improved macroeconomic policies in many developing countries.
Finally, the risk of future recessions is expected to remain, with many economies still vulnerable to changes in the global economic landscape.
