U.S. economy remains a cornerstone of global growth: your portfolio ready?

Hope you had a great Thanksgiving weekend! From The Capital Group….

As inflation eases and central banks around the world cut interest rates, the outlook for the global economy remains decidedly mixed heading into the new year. Much like the past few years, the United States and India continue to lead the way, driving global economic activity, while weaker economies in Europe and China seek to stimulate growth.

With U.S. labor markets healthy, profit growth solid and business investment picking up, the International Monetary Fund (IMF) recently raised its forecast for U.S. economic growth in 2025 to 2.2%. That prediction offsets downward revisions for other advanced countries, including the largest economies in Europe. China, meanwhile, continues to struggle with a real estate downturn and worries about a broadening trade war following U.S. President-elect Donald Trump’s victory on November 5.

“I tend to think about the world in terms of tailwinds and headwinds,” says Rob Lovelace, seasoned investment officer. “The U.S. has plenty of tailwinds at the economic level, the industry level and the company level. Japan is picking up some tailwinds. And I think both Europe and China are dealing with some real headwinds at the moment.”

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