The Pulse Global Economic Summary - September 20, 2024

US Oil Production Reaches Record Highs: Under President Biden, US oil production has surged to record levels, driven by geopolitical disruptions and high global demand for energy. Despite Biden's focus on green energy through the Inflation Reduction Act, the international oil market dynamics — primarily influenced by Russia’s invasion of Ukraine and the economic recovery post-pandemic — have resulted in US fossil fuel companies reaping significant profits. These companies, including ExxonMobil, Chevron, and others, saw their profits more than double during the first three years of Biden's administration compared to Trump’s tenure. The US also surpassed both Saudi Arabia and Russia in oil production, positioning itself as a leading global energy exporter​ ( Reuters)​(Reuters).

Inflationary Pressures and Economic Fragility: Economies remain fragile despite signs of easing inflation globally. Central banks, including the US Federal Reserve, continue to battle inflation, but the risk of recession lingers as global growth shows signs of strain. Rising debt levels, post-pandemic stimulus, and geopolitical tensions create uncertainty in many economies. In South Africa, rising unemployment and poor living standards contributed to political shifts, while in the US, voter dissatisfaction with economic policies may influence the upcoming elections​ (Reuters)​(Reuters).

Impact on Global Markets and Debt Risks: The global economy faces new challenges as inflation recedes in many regions. Analysts warn of heightened fiscal risks as countries navigate rising debt burdens, particularly in light of aggressive political promises involving large spending plans. The US federal debt has surpassed $34 trillion, and several significant economies continue to grapple with budget deficits. As these issues persist, the potential for financial shocks grows, raising concerns about global economic stability​(Reuters)​(Reuters).

For further details, refer to the full articles on Reuters.

Source: https://www.reuters.com/graphics/GLOBAL-ELECTIONS2024/gdvzmkejkpw/,https://www.reuters.com/graphics/GLOBAL-MARKETS/RECESSIONRISK/mopanaabnva/,https://www.reuters.com/graphics/USA-BIDEN/OIL/lgpdngrgkpo/

‍