Resilient majors

Growth in major advanced economies, except the United Kingdom (UK), remained resilient in the fourth quarter of 2023, with economic momentum continuing in the US, China and Japan. The euro zone avoided a contraction, but the UK slowdown accelerated in the fourth quarter of 2023, with the economy now in a technical recession.

Experience on the inflation front is diverging. In the US, the disinflation process remains uneven. As of February 21, 2024, S&P Global Ratings does not expect the Federal Reserve to cut rates before June. Inflation in the euro area (EA) eased further in February, but remains above the European Central Bank's target. On the other hand, inflation in Japan continued to ease, but remained above the Bank of Japan's target. China's prices rose in February after four months of deflation, led by an increase in non-food prices.