Page 54 - ΝΑΥΤΙΚΑ ΧΡΟΝΙΚΑ - ΟΚΤΩΒΡΙΟΣ 2024

ECONOMIC OUTLOOK

US Treasury Monetary policy is thus turning a corner, with an (91%) and a lack of global collaboration (67%).
Secretary Janet expected return to loosening in most countries The chief economists view domestic political
Yellen (L) walks and regions. In the US and Europe, nine out of 10 obstacles more as a challenge of leadership and
with Governor of the
People's Bank of chief economists expect looser monetary policy trust than a matter of broad-based opposition.
China Pan Gongsheng in the year ahead, and the majority expect looser The lack of global collaboration is, in turn, also
(R) as they meet at monetary policy everywhere, aside from Central undermined by domestic political trends (83%)
The People’s Bank of
China in Beijing, Asia and Sub-Saharan Africa. but also strongly affected by geopolitical ten-
China, 08 April Eralp Denktas notes that ‘’More recent data flow sions (91%).
2024.
gives us more confidence that inflation figures Srinivasa Rao Nagarjuna, Chief Economist &
Credit: are heading towards targets, and this will likely President at Bajaj Finserv Limited, points out
ΕPA/Tatan Syuflana give some space to policymakers to reorient their that “another major challenge which requires to
/ POOL
policy agenda towards activity and trade. So, the be astutely navigated is the ongoing geopolitical
global recovery is set to continue.’’ conflicts which pose a risk to global economic
Ludovic Subran agrees that “abating inflation stability. Finally, the current global financial con-
is a big plus as it really means that the normali- ditions and the elevated debt levels across both
sation of everything, from monetary policy and the advanced and developing economies pose a
supply chains to asset prices and bankruptcies, is substantial threat to the overall macroeconomic
happening without too much havoc. It confirms stability and require calibrated policy interven-
policy choices worked overall in spite of the dis- tions by most of the governments to steer the
locations they may have created’’. growth in the right direction’’.
The chief economists were asked to assess
Prospects for a new growth agenda whether a trade-off exists between growth and
When asked about the prospects for a new four other potential policy goals: environmental
growth agenda, the chief economists’ responses sustainability, economic equality, social cohesion
revealed a solid consensus on the importance and national security.
of balancing growth with other policy priorities. With regard to equality and security, only 12% of
Around two-thirds of respondents agree that pol- respondents said a significant trade-off exists.
icymakers should prioritise economic growth, That figure rises to 21% for social cohesion. Only
with a similar proportion agreeing that progress environmental sustainability shows a meaningful
on other goals must be made, even if this exerts split among respondents, with equal proportions
a drag on growth. of 44% agreeing and disagreeing that a trade-
Slowing growth and fiscal pressures among the off exists.
challenges of addressing national and global In conclusion, the report indicates that the lon-
crises ger-term economic agenda is likely to be increas-
The main obstacles to achieving better balance ingly shaped by these broader questions about
are a lack of domestic political consensus or will what kind of growth is desirable and achievable.

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