In 2024, global economic growth is expected to slow down in markets across the globe, especially in the developed markets owing to prevailing high interest rate environment. On the positive side, inflation is expected to continue its downtrend. Monetary policy easing is a key expected event in 2024 that would support equities and bonds. However, change in Fed’s stance in the event of uptick in inflation, geopolitical risks present some downside. Economic disassociation and regulatory developments would also impact sectors to different degrees. IT, communication services,energy, and utilities could prove to be key sectors. On the other hand, laggards include sectors such as financials, consumer discretionary, and real estate.
GCC economies are expected to rebound in 2024 with the unwinding of OPEC+ cuts supporting oil GDP and private consumption and investment supporting non-oil GDP. These growth prospects and monetary policy easing are expected to support GCC equities.
Among commodities, gold and silver are expected to be positive in 2024. Oil prices are expected to gain support from OPEC+ cuts even as increasing non-OPEC+ supply could cap gains.