Economy Archive

Egypt’s economic growth is set to be slower than expected this year after an $8 billion agreement was signed with the IMF in March, according to a Reuters poll of 17 economists. Gross domestic product (GDP) is now forecasted to grow 4%—down from a previous 4.35%.

South Africa, Africa’s largest economy with a GDP over $373 billion, faces significant challenges despite its former promise of stability. Their economy contracted by 0.1% in the first quarter of 2024, dragged lower by manufacturing, mining and construction.

China’s economic recovery this year has been lackluster due to production outperforming consumption. Experts say vigorous exports and favorable government policy toward manufacturing are the main contenders.

Mexico’s economic state remains impacted by several external and domestic uncertainties in addition to a recent volatility surge in the local currency market. Gross domestic product (GDP) is expected to rise 2.2% this year and 1.9% in 2025. The consensus view for next year was downgraded from a forecast of 2.1% in a January poll, according to Reuters.

The Spanish economy remains resilient despite uncertainties about future national and global economic policies. Spain’s GDP growth forecast for 2024 has been raised to 2.5%, driven by strong external demand, a growing labor force and recovery plan funds.

New Zealand’s government outlined a soft economy with rising unemployment and a weaker balance sheet of modest tax relief but lowered new spending—facing much criticism for neglecting the country’s indigenous population.

Dollar dominance—the outsized role of the US dollar in the world economy—has been brought into focus recently as the robustness of the US economy, tighter monetary policy and heightened geopolitical risk have contributed to a higher greenback valuation. At the same time, economic fragmentation and the potential reorganization of global economic and financial activity into separate, nonoverlapping blocs could encourage some countries to use and hold other international and reserve currencies.

The Turkish government has struggled to tame inflation for the past year. Inflation sits at 70% despite an interest rate of 50% from Turkey’s central bank. Why it matters: Turkey may be forced to sacrifice economic growth as it tries to lower inflation.