In 2023, major economies maintained contractionary monetary policies which led to significant moderation in global inflation. However, the tighter monetary stance also dampened global economic growth during the period. While we anticipate a continued decline in global inflation, we expect a further slowdown in global growth to be influenced by geopolitical crises (current and looming), reduced US household savings, and subdued demand in some major climes.
On the domestic front, major fiscal policy reforms implemented in 2023 – fuel subsidy removal and currency devaluation – exacerbated inflationary pressure and lowered output growth during the year. We, however, expect the impact of economic reforms to lessen in 2024, and gradually spur business activities. Meanwhile, we note that the factors driving inflation still persist, thus, we expect further spikes in price levels in the near term.
In our 2024 full year outlook report, we discuss the macroeconomic and market environment for 2023FY, while providing guidance on strategies for investment positioning for 2024.
Kindly find attached the full report below.
Meristem 2024 Full Year Outlook – Setting Sail for Gradual Recovery
