The BRICS economic alliance has officially added Saudi Arabia, the UAE, Iran, Egypt, and Ethiopia to its ranks, marking the first expansion since South Africa joined over a decade ago and with nearly 30 more countries seeking entry.
Pakistan faced a tumultuous year in 2023, grappling with economic uncertainty, inflation, political instability, and a decline in capital flows, but also experienced some positive developments such as a rebound in the stock market and improved investor confidence. The future of the country's economy and its ability to sustain growth will depend on long-term reforms and the commitment of political leaders to prioritize economic development.
The cost of living crisis continues into the new year, but there are some positive changes ahead such as falling mortgage rates and increased childcare offers, while energy price caps have been reset and tax avoidance crackdowns are underway.
Canadians are becoming more aware of the need for the Armed Forces to respond to crises globally and within Canada, as the Canadian Joint Operations Command had a busy year in 2023 evacuating Canadians and providing assistance for wildfires, floods, and disasters; Russia has sentenced over 200 captured Ukrainian fighters to prison terms since its military operation in Ukraine began; three former Trump administration officials warn that if former President Trump is reelected, he would pose a danger to democracy; Chinese President Xi Jinping pledges to consolidate and enhance the positive trend of China's economic recovery in 2024; and Li Auto Inc. plans to launch its high-tech flagship family MPV, Li MEGA, on March 1, 2024.
A growing number of Americans are joining prepper communities and stockpiling supplies in anticipation of a possible global catastrophe in 2024, with concerns ranging from economic collapse to cyber attacks or World War Three. Preppers come from various political backgrounds, including both right-wing and left-wing ideologies. The rise of prepping has led to increased sales of bunkers and an overall increase in preparedness measures, driven by fears of civil unrest triggered by the 2024 election.
The housing market in the US is facing an affordability crisis, with mortgage rates more than doubling, making it increasingly difficult for buyers and renters to achieve the American dream of owning a home. Many individuals with good-paying jobs are unable to save enough for a down payment, leading to frustration and hopelessness. Structural barriers to building housing and anti-development sentiment are contributing to the crisis. Some individuals have been forced to relocate to more affordable areas, while others are stuck in rent-controlled apartments. Despite recent declines in mortgage rates, the housing market remains challenging, leaving many with uncertainty about their ability to own a home.
2023 has seen the collapse of "woke corporatism" as over-hyped trends like working from home, ESG investing, shared workspaces, and plant-based food startups have faltered, potentially making the system more robust and profitable in the long run.
Despite economic indicators pointing towards a potential recession, luxury lipstick sales have been thriving as consumers turn to affordable indulgences during tough times, showcasing the impact of sentiment-driven spending on the economy.
Despite earlier recession fears, the stock market closed on a positive note in 2023, with the S&P 500 up 24 percent for the year, thanks to strong gains in December and signals from the Federal Reserve about potential interest rate cuts in 2024. However, the disconnect between macroeconomic success and individual financial struggles remains a challenge for the Biden Administration in the upcoming election year.
Mortgage rates are expected to continue trending down in 2024, allowing homebuyers to find more affordable mortgage payments and potentially providing opportunities for homeowners to refinance at lower rates. Additionally, home prices are not likely to decrease significantly in the coming year, but the current low supply of homes may help to stabilize prices.
The stock market closed the year with strong gains despite earlier recession fears, driven by positive economic indicators, the Federal Reserve's signaling of interest rate cuts, and the performance of key technology stocks. However, American consumers remain discontented with the state of the economy, posing a challenge for President Biden's reelection campaign.
Lower-income Americans have experienced significant economic gains, but their stories have been overshadowed by headlines about layoffs in tech and media, leading to a perception that the economy is worse than it actually is; however, recent data shows a strong recovery with low unemployment rates and increased retail sales.
Singapore's economy grew 1.2 percent in 2023, avoiding a recession, but Prime Minister Lee Hsien Loong warns of challenges ahead due to geopolitical uncertainties and the impact of climate change.
A coalition of charities is urging the energy regulator, Ofgem, to abolish midwinter energy price increases in order to protect households from unaffordable bills during a time when many are already struggling financially. The charities argue that the January price hike is a burden on households that are already facing high energy costs, Christmas debts, and a general cost of living crisis. They are calling on the government to implement an emergency energy tariff for vulnerable households and a help-to-repay scheme for those in energy debt to address the cold homes crisis. The Trades Union Congress (TUC) has also highlighted the need for investment in publicly owned clean energy alternatives and the energy efficiency of homes to keep energy bills in check.
The British economy experienced a decrease in inflation in 2023 but faces the possibility of a recession and further pressure from interest rate hikes, leaving experts concerned about the state of the economy in 2024.
Many households in the UK are struggling with the ongoing cost of living crisis, with 2m households forced to unplug their fridge or freezer to keep bills low, 2.8m people in debt to pay for food, and 1 in 6 having to use a "warm room"; however, there is information regarding state financial support available to low-income families in January and when benefits will be paid.
The Nigerian Investment Promotion Commission (NIPC) provided a three-year tax exemption to 34 companies in 2023 to stimulate investment and boost economic growth, according to the head of incentives administration, Lovina Kayode.
The serious international crises in 2023, including the war in Ukraine and conflicts in the Gaza Strip, have resulted in detrimental effects on the global economy, with an attempt by the US to destabilize supply chains and the risk of a "new Cold War"; therefore, the promotion of multilateralism and inclusive collaboration is essential for global economic recovery and addressing shared challenges such as climate change. China has achieved economic recovery and will contribute to the global economic recovery, while the US needs to pursue dialogue and cooperation.
India is projected to remain the world's fastest-growing major economy in 2023, with a growth rate of 6.3 percent, outpacing China and Brazil, due to factors such as increasing demand, stable interest rates, and robust foreign exchange reserves, despite global headwinds and geopolitical challenges.
Despite economists' predictions of a recession in 2023, the US economy has performed well with inflation and unemployment trending positively, leading to questions about the accuracy of economic forecasts and the need for a reassessment of macroeconomic theories.
The year 2023 in Africa saw significant economic changes, including the removal of fuel subsidies in Nigeria, the lifting of visa bans in Rwanda and Kenya, the opening of the Dangote Refinery in Nigeria, the inaugural Africa Climate Summit in Kenya, Ethiopia's default on debt repayment, and Angola's exit from OPEC.
China's manufacturing PMI fell for the third consecutive month, indicating the challenges faced by the country's second-largest economy and the need for more policy support to achieve economic stabilization goals in 2024.
Consumers in 2023 experienced the worst inflation in a generation, with high food prices and energy bill increases causing financial hardship for many households. Despite a slight slowdown in the rate of price rises, affordable food options may not return to pre-crisis levels, and energy bills remain significantly higher. With falling fuel prices and a drop in food inflation, headline inflation has decreased to its lowest level in over two years, but the Bank of England warns that the task of reaching the 2% target is not yet complete. The new year may bring a slight increase in headline inflation due to the re-weighting of the Consumer Prices Index basket and an increase in the household energy price cap.
Consumer goods manufacturers in Pakistan are experiencing brisk sales, which they attribute to price increases, but market analysts believe it is due to a slowdown in the volume of goods purchased and consumers' reduced buying power, as reflected by the introduction of smaller packaging sizes. Despite challenges such as high inflation and limited foreign exchange availability, companies like Nestle and Unilever remain cautiously optimistic and focus on boosting exports.
Canada’s economy in 2024: High interest rates, inflation, and a slowing economy create uncertainty for Canadians.
China's manufacturing activity contracted for the third consecutive month in December, indicating a weaker-than-expected economic recovery and increasing the need for stimulus measures, such as interest rate cuts and reserve requirement reductions, to bolster growth.
The High Street is expected to bounce back from the economic downturn as economists predict that the Bank of England will cut interest rates in 2024 to support businesses and with inflation slowly easing, consumer confidence is also starting to improve.
The Reserve Bank of India has raised its forecast for India's real GDP growth in 2023-24 from 6.5% to 7%.
The US labor market is expected to remain strong while wage gains continue to ease, which could contribute to steady economic growth and decreasing inflation in 2024.
The U.S. economy is facing challenges in 2024 due to harsh economic conditions in 2023, such as high inflation, rising prices, and high interest rates, which have drained savings accounts and left consumers struggling, leading to concerns about a potential recession and the negative impact of Biden's economic policies.
The economic outlook for New York City in 2024 is characterized by slow growth, low-wage job growth, rising unemployment, increased poverty and income inequality, and significant racial disparities in economic outcomes.
Donald Trump said in a 2004 interview that "the economy does better under the Democrats than the Republicans," which has been verified as true through evidence such as news articles, political ads, and transcripts of the interview.
Despite positive economic conditions, economists warn that there is still a risk of a recession in the coming year due to potential setbacks in the private services sector and the Federal Reserve's interest rate policies.
JPMorgan analysts warn that declining growth and a possible recession may cause US equities to underperform, with stocks potentially lagging behind cash by 20%.
Colombian President Gustavo Petro has proposed lowering the country's corporate tax rate and increasing income taxes for high earners in order to stimulate growth and create a more just tax system.
Nigeria's non-oil revenue has grown by 67%, reaching N3,977.16 billion, due to increased collections from taxes and customs duties, according to a report from the country's Central Bank.
New Jersey's unemployment rate has seen the biggest increase in the nation as of November compared to the previous year, reaching 4.7%.
Despite predictions of a recession, the year 2023 turned out to be a success for American workers, with over 525,000 workers going on strike and securing big concessions from employers due to a historically tight labor market and rising wages.
The Federal Reserve is expected to cut interest rates below 3% by December next year, according to UBS chief US economist Jonathan Pingle, as a result of a mild recession triggered by a pullback in consumer spending, which implies more than 225 basis points in cuts - a deeper pivot than many on Wall Street anticipate.
Stocks are likely to retreat in January after an overbought Santa Claus rally, and the US economy is more fragile than it seems, according to David Rosenberg, president of Rosenberg Research. He predicts a potential slump in 2024 due to past fiscal excess and interest-rate hikes.
The article discusses the IMF's GDP forecast for 2030 and ranks the top 30 growing economies, including Argentina, Malaysia, Nigeria, and the Philippines.
The European Union's single market, once hailed as a major achievement, has been a failure, with slow growth and declining competitiveness, and countries like the UK are better off outside of it, according to an analysis of its impact over the last three decades. The single market's flaws, including excessive regulation, social legislation, and the lack of focus on services, have hindered growth and innovation, while the poorly designed euro has caused economic decline.
Chinese electric vehicle (EV) makers are turning to Mexico as they face tariffs and competition in the US market, with several companies planning to build factories in Mexico, which has a free trade agreement with the US and Canada, thus offering a potential stepping stone into the US for Chinese EVs. This move is concerning for US automakers and lawmakers, who fear that Chinese EVs will flood the US market through Mexico and other trading partners.
The United Kingdom is expected to outperform Germany in terms of economic growth as the Eurozone faces the risk of a deeper recession, with analysts predicting that the UK will bounce back within a year.
France plans to introduce a new rule in 2024 that requires shops to inform consumers about shrinkflation, a practice where manufacturers reduce the quantity of a product without lowering the price, in response to increasing concerns about consumer deception.
Shipping costs are rising and merchant shipping rates are increasing as container ships avoid the Red Sea and Suez Canal due to attacks by Iran-backed Houthi militants, causing disruptions in global trade.
High-income countries have shown remarkable resilience in the face of various challenges, with stock markets reaching all-time highs and economies remaining stable, despite geopolitical tensions and potential risks in the year ahead.
Foreign investment in Nigeria declined by 34% in the first nine months of 2023, with 27 states failing to attract any foreign investment, while Lagos received the highest amount of foreign investment at $1.67 billion.
The U.S. total debt has reached almost $34 trillion, with about $27 trillion held by the public, causing concerns among Republicans and Democrats about the need to control it.
The Canadian housing market correction is expected to end in 2024, with interest rate cuts potentially alleviating some of the pressure on potential buyers, according to forecasts by Ipsos and RBC; however, a significant rebound in home sales and prices may not occur until interest rates decline further. Elevated interest rates have kept many Canadians, particularly millennials and those in British Columbia and Quebec, out of the housing market, according to Ipsos polling. Additionally, high borrowing costs have made it difficult for homeowners to afford their mortgages, potentially leading to an increase in home sales if sellers are forced to put their homes on the market. Although the housing market is expected to see increased activity in the second half of 2024, a meaningful improvement in borrowing costs, such as multiple interest rate cuts, is necessary to bring buyers back in significant numbers. Royal LePage also predicts a pick-up in sales and prices in the second half of the year. The rental market has also faced challenges due to surging demand, inadequate housing supply, and higher borrowing costs, resulting in increased rent prices. Renters may experience some relief if borrowing costs ease and more rental units become available as homeownership affordability improves. However, tension is expected to remain in the rental market, particularly due to strong demand from immigrants. Housing affordability has been a concern, with rising borrowing costs and home prices leading to the worst affordability levels in 41 years in 2023. Despite a decline in home prices in some markets and changes in fixed mortgage rates, national affordability levels are expected to continue restraining first-time homebuyers until multiple interest rate cuts are implemented. The lack of housing supply also contributes to decreased affordability, as Canada will need to add an additional 3.5 million housing units by 2030 to restore affordability. Efforts by the government to address the housing supply crisis are underway; however, it is uncertain whether these efforts alone can keep up with demand and reduce home prices. With the upcoming year being crucial for addressing housing affordability, Canadians are eager to see results from the promises and proposals made by politicians at all levels of government.