According to economists surveyed by Bloomberg, the global Gross Domestic Product (GDP) is projected to grow by an average of 2.6 percent next year, surpassing the consensus forecast of 2.1 percent.
Interestingly, Goldman Sachs Research has a more optimistic outlook for GDP growth in 2024 compared to the consensus forecast for eight out of the nine largest economies in the world as of November 8, 2023.
Moreover, Goldman economists anticipate that the U.S. will outperform other developed markets in terms of growth.
Goldman Sachs Research suggests that the impact of artificial intelligence (AI) on the U.S. GDP will become measurable in approximately four years, with other economies experiencing its effects shortly after. The basis for this forecast is the belief that AI has the potential to automate roughly 25 percent of work tasks in advanced economies and 10-20 percent of tasks in emerging economies. The report stated that AI’s influence on economic growth will result from these automation capabilities.
By 2034, Goldman economists estimate that AI will contribute a growth boost of 0.4 percentage points to the U.S. GDP, an average of 0.3 percentage points to other developed markets, and an average of 0.2 percentage points to advanced emerging markets. However, in other emerging markets, the forecast predicts a smaller boost from AI due to slower adoption and limited exposure to AI technologies.
Read more: What does the recent downgrade of U.S. banks mean?
Moody’s cuts U.S. credit outlook to negative
On Friday, credit ratings agency Moody’s downgraded the U.S. credit rating outlook from “stable” to “negative”. The downgrade was attributed to concerns over a significant fiscal deficit and low debt sustainability.
This occurred subsequent to Fitch’s downgrade of the U.S. sovereign rating earlier this year.
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