Global growth is anticipated to be moderate, with the year-average GDP growth for Australia’s major trading partners expected to slow down in 2024, affecting demand for Australian exports. Inflation in advanced economies is projected to align with central bank targets within the next year, amidst softer economic growth and a slight easing in labour markets, suggesting policy rates may have reached their peak.

Growth in advanced economies is set to decelerate significantly due to the impacts of tighter monetary policy, with G7 economies, excluding the United States, expecting below-average growth compared to pre-pandemic levels.

China’s growth is forecasted to slow, impacted by a weakening property sector and a decline in services consumption, although this may be partially mitigated by manufacturing investment and infrastructure policy support.

Global bond and equity markets ended the first quarter of 2024 on a positive note, achieving new heights with the MSCI global share index reaching record levels in March, propelled by changing expectations around U.S. Federal Reserve rate cuts.