Economy Archive

A long-running domestic political battle over controversial judicial reforms receded into irrelevance on October 7, the date on which Hamas militants based in the Gaza Strip launched a coordinated assault on mostly civilian targets inside Israel that resulted in more than 1,100 deaths and the capture of more than 250 hostages. Under the direction of a special war Cabinet that includes Benny Gantz, a former head of the IDF and the leader of the opposition National Unity, which joined an expanded emergency government, Israel initiated a scorched-earth ground invasion inside Gaza in late October.

Despite higher interest rates, the Canadian economy is exceeding expectations and has dodged the predicted 2023 recession. Real GDP at basic prices grew 0.6% in January (7.4% annualized), and preliminary estimates pointed to 0.4% growth in February (4.9% annualized). This suggests that growth in the first quarter of 2024 is on track for around 3.5%, according to data from Statistics Canada.

Economic growth in France is less than expected for this year with weaker consumer spending and investments, according to the central bank’s recent forecast. The European Commission cut its 2024 GDP growth forecast from 1.2% to 0.9%—as French manufacturing worsened toward the year-end of 2023.

After a tumultuous election period, the Pakistani government now must deal with fallout from the country’s mount of foreign debt. The State Bank of Pakistan estimated its debt to be $124.5 billion and 42% of GDP. Though this is not extremely high based on international standards, Pakistan’s annual foreign exchange earnings through exports show that they are not enough to pay for imports.

Tight macroeconomic policies in Colombia within the last two years are likely the cause of a reduction in domestic and external imbalances seen mainly in 2021-22. The Colombian economy is expected to grow 1.8% as inflation slows 5% this year, and the central bank plans to cut its interest rate to nearly 8%, according to Finance Minister Ricardo Bonilla.

While the U.S. economy seems to have avoided a recession, the forecast for 2024 remains mixed. It is no secret that inflation, labor shortages and geopolitical tensions all contribute to current economic conditions. Despite these factors, real GDP growth is expected to bounce between expansion and contraction for much of this year—showing the U.S. has reached a soft landing.

The Indian economy’s recent stellar performance is undeniable. It was the quickest-expanding major economy in 2022 and 2023—and is projected to maintain this lead in 2024.