Nicolas Aitken Jr.

Professor Mayer. Philip

Principles Of Microeconomics

November 1, 2024

Research/Analysis On The Global Economic Status

As we further progress throughout the last quarter of 2024, we are able to conclude this

year’s economic status and start making some predictions of next year's growth. Studies have

shown our data during this year 2024, we foresee real GDP(Growth Domestic Product) growth

averaging 2.7% in 2024 and easing to 1.9% in 2025 but realize the unusually elevated level of

uncertainty dependent on the election outcome. With this being said inflation has started to ease

its way down to 3.2% and is expected to lower down even more to 2.5% by 2026, But how is the

global economic growth right now? Well as of right now the growth seems to be doing ok but

not at the best place as it is stabilized but at a very weak pace, some may say this is the weakest

growth since 2001 with the exception of the pandemic. But we will disclose that and many more

things as we continue our research, so let's not waste anymore time and start with the U.S

economy.

The United States economy was able to grow up to 2.8% after the previous quarter of this

year as consumers are still spending despite the increases upon interest rates. According to

surveys from the economists, the latest GDP figure has fallen slightly after the second quarter of

this year’s growth which was around 3%. This growth was able to influence consumer

confidence in October which has been the highest level before January 2024, and could signal

that U.S households will continue to spend. As the U.S. consumer is not showing any hint of a

slowdown, it stated, " Olu Sonola, head of U.S. economic research at Fitch Ratings, said in an
email. "Far from it. With an economy this strong, it is difficult to imagine that labor market

conditions will deteriorate sharply over the near term."(Picchi, Annie). The world’s biggest

(America’s) economy has shown some astonishing resilience in front of higher borrowing rates

as the Federal Reserve tightened monetary policy in a bid in order to control inflation.

However, not every nation is experiencing good breakthroughs as the United Kingdom

has started to boost their budget in order to reboot their own economy. The government spotted

its reputation on delivering growth, stating that a new direction into investments that would

underpin a healthier economy. Though, the OBR(The Office for Budget Responsibility) has their

doubts as they believe that in the short-term, budget boost could possibly increase inflation and

interest rates as a “knock-on” effect but should be able to reform the economy in the long-term.

Evenly, if the growth was strong, the tax revenues may increase which could mean that there

would be no more money to spend for the public services or on reducing taxes, and to pay the

interest on government borrowing. But if the growth is very weak, then the government would

have to resolve into cutting back into what it would like to do.

On another topic, Ireland is arguing whether Chinese investments are beneficial or

damaging the Irish economy. For some people, this new flood of yuan(china’s currency) into the

country offers Ireland an opportunity to reduce its reliance on being the European base for US

tech giants such as Apple, Alphabet, and it creates additional jobs(Belton, Padraig). One Chinese

firm that has a European base in Ireland is the app known as “TikTok” and another firm called

“Temu” that just recently moved to Ireland last year. These actions started to gain critics

attention as they became more and more concerned about the human rights abusing allegations in

some companies and argued that Chinese tech firms are less beneficial than U.S tech firms that

live in ireland. But given how much the ireland economy is dependable on FDI, some chinese
firms may think that there is a welcome insurance policy and may step away from going to

ireland in the first place.

Meanwhile, the electricity cost spikes continue to threaten jobs, the economic growth,

and businesses themselves in the state of connecticut. Not only that, residential customers have

been hit with a sudden increase on their electric bills which caused a petition to call the

lawmakers and regulators to act making more than ten of thousands of signatures to be signed.

As we expect an impact on the state's high living costs, Public benefit charges represent at least

60% of the electricity bills which also include the utilities that would require to collect some

amount of that charge Then be established by the Public Utilities Regulatory Authority.

Connecticut's energy costs have increased higher and higher from the last decade, rising up to

54.6% and national costs up to 26.3%. This could end up not attracting businesses as it is very

discouraging to pay high amounts in electricity and serve as consequences for the economic

growth in the state.

In addition to this information, New London has been rising in unemployment rates and

is now higher than the national unemployment rate. Far before the pandemic of Covid 19, the

city's economic status was already struggling due to the I-95 gold star memorial bridge and the

urban renewal process from the 1950’s to the 1970’s displaced residents. Throughout the urban

renewal process alone, 667 families were displaced in New London, almost a quarter of those

residents were of color, while the city’s minority population comprised only 7.8%(Wright,

Terell). Despite the city’s troubled past, and continued economic stagnation, residents and

government officials remain hopeful New London will regain its significance again. Mayor of

New London county, Michael Passero stated that “There has not in my lifetime been so much

interest by developers and investors and our historic structures downtown.” but was then
objected by a Local historian and native Tom Schuch, as he states that urban renewal’s dark

legacy can never be removed from the city’s history which includes 3 major events; the american

revolution, the 38, hurricane, and the redevelopment program.

Over in Boston Massachusetts, The financial close to nearly $170 million in funds and is

stated that the investment should benefit up to 1,400+ affordable apartments. The fund will allow

the capital to 14 affordable housing developers, 30 percent of whom are nonprofit organizations.

ITC 60 will be the one to provide funding for the new construction and preservation projects in

the following states: California, Illinois, Louisiana, Maine, Maryland, Massachusetts, North

Carolina, Pennsylvania, Rhode Island, Tennessee, Texas, Virginia, and Wisconsin. With this in

mind, ITC is also in the process of creating 2,100 new job opportunities which is estimated to

approximately $250 million in wages and businesses to surrounding communities, and up to $90

million in tax revenues. One of the projects that included ITC 60 was the Pointe common in

fulton and california, the construction for the project began in july and is expected to be finished

in the beginning of 2026. The project will consist of a three-story-building that includes 29 one-

bedrooms units, 19 two-bedroom units, 17 three-bedroom units, 108 parking spaces, and 6

electric vehicle charging stations.

In other news, inflation has been able to recede over the years but in exchange, the global

economy will need to triple their policy pivot. As the battle against inflation has been victorious,

After peaking at 9.4 percent year-on-year in the third quarter of 2022, we now believe that

headline inflation will fall to 3.5 percent by the end of next year. During the disinflation process,

studies have shown that there has been no significant impact on the economy and is rumored to

rise up to 3.2% in growth. Despite all the good news about inflation, there are some downsides

that are hinting of potential risks that could be increasing and now dominate the outlook. An
escalation in regional conflicts, especially in the Middle East, could pose serious risks for

commodity markets. However, if we are able to lower the interest rates in some major

economies, we might be able to ease the pressure on combined market economies and could also

help reduce imported inflation making it easier for the other countries to continue their own

deflation process.

So although there might be some downsides to the global economy, there has been some

improvement over the years and continues to help the growth of our own economy. The

improvement is good enough that citizens/residents are able to confidently spend their money as

they please without having to worry or be too concerned about their budget. A plus to all this is

that there are projects for apartment buildings all over America being produced which would

allow more housing and should become less stressful about the homeless rate. Even though

Connecticut has one of the highest prices for electricity, I believe it could benefit us in the near

future as we improve our technology and allow it to become more advanced. But overall, we

have improved to say the least and I am mostly excited about the news of the economic growth

in Boston as I plan to hopefully live there in the future.

https://www.cbsnews.com/news/us-gdp-2024-third-quarter-consumer-spending/

https://www.bbc.com/news/articles/c5yge6knpzdo

https://www.bbc.com/news/articles/cj9je2wnveko

https://www.cbia.com/news/issues-policies/electricity-cost-spikes-energy-policy/

https://www.ctpublic.org/news/2024-04-10/new-london-never-recovered-from-urban-renewal

https://www.multihousingnews.com/boston-financial-closes-170m-fund/

https://www.imf.org/en/Blogs/Articles/2024/10/22/as-inflation-recedes-global-economy-needs-

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