Global Economy in a Delicate Balance: Inflation, Trade Risks, and the UK’s Role
The global economy treads a precarious path as inflation remains stubbornly high and political risks escalate. The IMF projects a modest 3.2% growth rate for 2024—a figure that underwhelms against the backdrop of persistent services inflation. Central banks face mounting pressure to maintain elevated interest rates, a strategy that may further stifle economic momentum.
Commodity prices, notably oil, show signs of retreat—a potential long-term deflationary signal. Yet this fragile equilibrium faces disruption from rising trade tensions, including fresh tariff threats. The UK’s position in this landscape remains particularly exposed to both domestic policy decisions and global headwinds.