Bankers are more optimistic about the US economy and cautious about the global outlook. (Source: Twitter)

However, the possibility of the US Federal Reserve (Fed) implementing loose monetary policies brightens the outlook for the world's largest economy as well as risky assets such as stocks.

Banks such as Goldman Sachs, Barclays and asset management consultancy UBS Global Wealth Management all forecast the global economy to grow 2.6% in 2024. JPMorgan is more cautious, forecasting 2.2%.

Morgan Stanley (USA) and the market research department of Bank of America both gave a higher forecast of 2.8%. The lowest forecast was given by Citigroup (USA) at 1.9%.

By country and region, Goldman Sachs said that the US economic growth in 2024 is 2.3%, while that of China and India is 4.8% and 6.3%, respectively.

Eurozone growth is forecast to reach 0.9%.

Meanwhile, Citigroup gave the lowest forecasts, with US economic growth at just 1.1%, with China and India at 4.6% and 5.7% respectively. "Economic growth in the Eurozone and the UK in 2024 is likely to be -0.2% and -0.3% respectively," according to Citigroup.

Explaining the above predictions, banks said that expectations of the Fed cutting interest rates in 2024 are the basis for a more optimistic forecast for the US economy. Along with that, the US economic growth outlook will have a positive impact on riskier assets such as the USD, stocks and US government bonds.

Meanwhile, the European Central Bank (ECB) and the Bank of England (BoE) are set to maintain high interest rates for longer, clouding the economic growth outlook for the Eurozone and the UK.

In the World Economic Situation and Prospects 2024 report released on January 4, the United Nations (UN) gave a gloomy forecast for the global economy this year, due to challenges such as escalating conflicts, weak global trade, high interest rates and increasing climate disasters.

Fears of a recession in 2023 have been averted largely because the United States, the world's largest economy, has kept inflation under control without slowing growth, said Shantanu Mukherjee, director of the UN's Department of Economic Analysis and Policy.

However, Mr Mukherjee said the global economy was not out of the woods yet, with interest rates very high for a long time and the risk of price shocks. A supply shock could lead to interest rate hikes to bring inflation under control.

(according to AP)