In Q3 2024, the global economy showed mixed performance, characterised by high interest rates slowing growth, while inflation moderated. The U.S. and Europe faced weaker consumer spending, whereas India thrived with strong growth. China's recovery lagged, and uncertainties in Q4 hinge on central bank actions and geopolitical factors.
Real interest rates have rapidly increased recently as monetary policy has tightened in response to higher inflation. Whether this uptick is temporary or partly reflects structural factors is an important question for policymakers.