Global Scans · Economy · Weekly Summary

DRIVER: The global economy still faces serious headwinds and political uncertainty potentially balanced by the enormous promise of technological advancements in many fields. Read on to get a solid handle on the opportunities and risks you and your organization may likely face and set your sails accordingly.

• [New] Economic Survey 2024 Live: Indian economy needs to generate an average of nearly 78.5 lakh jobs annually until 2030 in the non-farm sector to cater to the rising workforce, the Economic Survey states. Hindustan Times
• [New] Risks include public debt and deficit concerns, complicated political situations in major economies, and potential protectionist tensions following the US elections in November. Alantra
• [New] Core inflation decreasing (though more slowly than in the US), and the ECB possibly lowering rates once more this year, with a terminal rate of around 3% in 2025. Alantra
• [New] Grain stocks from last year remained elevated within District states and across the U.S., putting additional downward pressure on prices and reducing revenue opportunities. Board of Governors of the Federal Reserve System
• [New] Electricity demand in the European Union is expected to increase by 1.7% in 2024 as economic difficulties ease, but uncertainty over the pace of growth remains. IEA
• [New] In PPP (purchasing power parity) terms, India will overtake the US by 2048 to become the second-largest economy in the world. NDTV
• [New] The shift towards renewable energy could heighten geopolitical tensions through soaring demands for critical minerals, expected to quadruple by 2040, and disrupt fragile economies dependent on fossil fuels through traumatic decarbonization. UNDP
• [New] Debate around the concept of circular economies has tripled in 5 years, with recent studies showing that circular economies could reduce by almost one third the current global volume of consumption. UNDP
• [New] The concentration of cloud services in the hands of a few companies not only heightens the risk of catastrophic failures but also exposes global economies to cybersecurity threats and operational breakdowns. Deccan Herald
• [New] Offsetting the likely negative economic effects of higher tariffs would be deregulations, an extension of tax cuts, and a potential lowering of the corporate tax rate to 15%, which are widely expected to be beneficial to US businesses. Seeking Alpha
• [New] The ongoing work in IoT will make new markets, boosting the global digital economy. GizChina Media
• [New] Production capacity of sustainable aviation fuel in the United States could increase from around 2,000 barrels per day to nearly 30,000 b/d in 2024 if all announced capacity additions come on line. EIA - Energy Information Administration
• [New] EIC Accelerator selects startups or SMEs with a high-impact product, service, or business model that demonstrates the potential to scale up, create new markets or disrupt existing ones in Europe and even worldwide. Stockhouse
• [New] Economic data in the US remains strong, with retail sales up in June alongside a larger-than-expected rise in industrial production. UK - EN - Institutional
• [New] Small-cap stocks in the US continued to gain as hopes rose of a Federal Reserve interest rate cut in September, with Fed chair, Jerome Powell, commenting that policymakers need not wait until inflation falls to its 2% target to act. UK - EN - Institutional
• [New] In 2024, the worldwide production of gold was expected to reach 124 million ounces, and it is anticipated that the rate of growth will increase as exploration technologies improve, gold prices rise, and mining practices improve. Statista
• [New] Skills could unlock economic growth in Scotland Another report co-produced by PwC and Connectr - the Youth Employment Index - found that Scotland's economy could be boosted by around £3bn per year by unlocking employment, training and educational opportunities for young people. Edinburgh Chamber of Commerce
• [New] In some countries, 800 million people in the world do not have enough food, [i] and any disruption in its production can lead to food shortages and price increases. Manara Magazine
• Production of green and blue ammonia is forecast to be 9.9 million tons in 2027, it works out at about 200,000 barrels a day - or 0.2% of current global oil demand. Energy Connects
• Net imports by Asia and Africa will continue to expand, as the growth of demand is projected to outpace growth in production. ReliefWeb

Last updated: 23 July 2024