Although the short-term outlook is expected to improve, the global outlook remains subdued by historical standards. By 2024-25, the World Bank forecast points to growth below the 2010s average in almost 60% of economies, which covers more than 80% of the global population.
Geopolitical factors continue to cause a great deal of uncertainty, having a direct and very rapid impact on growth rates. The evolution of the conflict in Europe, with no end in sight, the outbreaks of conflict in the Middle East and the doubts about the future trade policy of the United States of America with the new Presidency are all factors of uncertainty that jeopardise economic growth.
Global growth is expected to remain stable at 2.6% this year. Given continued inflationary pressures, central banks are likely to remain cautious about easing monetary policies; as a result, benchmark interest rates are expected to remain significantly higher than before the pandemic, although we may see them fall in 2025, especially in Europe.
In the case of Portugal, the IMF points to economic growth of 2.31Q3, higher than that projected for the Euro Zone (1.21Q3), with the inflation rate remaining at 2.11Q3, within the European Central Bank's target range, which could contribute to a reduction, even if only slight, in interest rates. We should see a positive trend in private consumption in Portugal, due to the rise in real incomes.