The start of a new calendar year brings with it resolutions related to improving yourself and your life — including money-related goals. But while actions like increased saving and smarter investing are in your control, there are plenty of global factors that could impact your finances.
Fortunately, as we sit at the start of 2024, experts are predicting a relative sense of economic calm, with improvement that’s slow and steady as we leave the pandemic behind. However, the conflicts in Europe and the Middle East are still ongoing — and potentially growing — so the mellow economic forecast could look different a few months from now.
Additionally, 2024 is an important election year across the globe. Along with the United States, seven of the top 10 most populated countries — including India, Mexico, Indonesia, Pakistan and Bangladesh — will head to the polls to elect a new leader, which could have ripple effects across the global economy. Here in the United States, the November elections are likely to shake the market regardless of the outcome.
With all of that in mind, here’s what experts are predicting for 2024.
A sense of calm.
At the start of 2023, experts saw a looming US recession. But thanks to interest rate hikes, a strong labor market and strong consumer spending, the US avoided disaster. With volatility behind us, experts are forecasting a smoother year ahead. But while the US economy’s growth is predicted to slow down, it shouldn’t impact the unemployment rate.
Lower inflation.
The last few years have seen sky-high prices on everything from gas to food, thanks to several issues, including the war in Ukraine, supply chain problems and the remnants of the pandemic. While inflation peaked at 9 percent last summer, it’s fallen to 3.1 percent, inching slowly down to the government’s goal of 2 percent. That means more moderated prices on goods and services consumers rely on.
A strong labor market.
The national economy boasts a 3.7 percent unemployment rate, and while experts predict a cooling job market could bump that number up to around 4.5 percent, it’s still one of the strongest times to be looking for a job in the US — with perks, bonuses and more leverage for potential employees.
A possible interest rate cut.
As the economy continues to be steady, the Federal Reserve is likely to lower interest rates, making large purchases — including homes and cars — slightly more affordable. Just expect a slow, incremental decrease, as opposed to the sharp rate increases we saw the last few years.
Keep in mind that while many factors are outside of your control, there are still things you can do to put yourself in a positive financial position in 2024, including sticking to a budget, paying off debts, creating an emergency fund and investing in the stock market — at any amount. Putting smart spending and saving habits in place will ensure you’re on solid financial footing, no matter what happens across the globe.
DISCLAIMER – This content is for entertainment and informational purposes only, and is not intended as financial, investment, or legal advice.