Global Growth Outlook

A gradually strengthening global economy and moderating inflation are positive for equity markets going forward. In the past, markets have reacted well to this combination. The global economic recovery is not only strengthening but also broadening to more countries as we move through 2024.

Despite a brief spike in inflation earlier this year, rates are moving toward central bank targets:

• Canada’s inflation rate fell to 2.7% in June down from 2.9%

• U.S. inflation also declined to 2.5% in June, down from 2.6%

• U.S. central bank commentary opens door to rate cuts in September

We are moving from a point where central banks challenged growth with tighter monetary policies, namely higher rates, to an easing cycle that will become an economic tailwind.