S&P revises up US 2024 growth forecast to 2.4% from 1.5%

ISTANBUL

S&P Global Ratings said it has revised up the US economy’s growth forecast for 2024 to 2.4% from its previous estimate of 1.5%.

“The real GDP growth we forecast for full-year 2024 is slightly weaker than the 2.5% growth the U.S. saw in full-year 2023, but it’s in line with the 2.4% average during the 2010-2019 economic expansion,” the agency said Wednesday in a statement.

“Better-than-anticipated real GDP growth in the fourth quarter of 2023 and a jobs market that appears sturdier than implied just one month ago led us to revise up our forecasts,” it added.

The agency, in addition, said it expects the US real GDP growth of 1.6% between the fourth quarter of 2024 and the fourth quarter of 2023, which is also up from its previous 0.8% forecast made in November.

S&P, on the other hand, said it has not changed its outlook for the US monetary policy this year.

“We believe the Federal Reserve will cut its policy rate by 25 basis points at its June meeting, with cuts totaling 75 basis points by year-end,” said the statement.

“Inflation will likely cool further in coming months, despite the uneven disinflationary process so far,” it added.

• Fed rate cut
• GDP growth
• S&P Global Ratings
• US economy