A record number of immigrants now make up 18.6% of the U.S. workforce, filling crucial roles in industries like technology, healthcare and agriculture. Economists say these workers are essential for growth, as the birth rate declines and more Americans retire. The government predicts immigrant workers will boost the economy by $7 trillion over the next decade.
Eurozone inflation remained steady at 2.4% in April despite a slight rise in core inflation to 2.7%. Meanwhile, the economy rebounded with 0.3% growth in the first quarter, ending a brief recession in the second half of last year. Economists expect the European Central Bank to cut interest rates in June to prevent an economic slowdown, but the pace of easing remains uncertain due to firmer core inflation and ongoing risks.
Economic growth slowed to 1.6% in the first quarter of 2024, below expectations. Meanwhile, inflation jumped to 3.4%, its highest rate in a year. Consumer spending also slowed, indicating consumers are starting to feel the pinch of rising prices. The report suggests the economy is facing challenges, with slower growth and higher inflation.
The UK economy grew slightly in February, ending a technical recession. While the GDP is still below its pre-pandemic levels, it shows signs of recovery, with construction output falling but production and services sectors growing. However, inflation remains high, and forecasts for interest rate cuts have been revised due to unexpected price increases in the US. The Bank of England is expected to cut rates four times this year, starting in June.
The Federal Reserve is meeting this week to discuss interest rates. They are expected to maintain the current range and project three rate cuts later this year. The meeting will focus on the "dot plot," which shows individual members' interest rate expectations, and could indicate a shift in the outlook on cuts. The Fed will also release economic projections for GDP, inflation, and unemployment, likely reflecting a revised inflation outlook and a slightly upgraded GDP forecast.
The UK economy grew a modest 0.2% in January, driven by construction and services. However, it remains in a shallow recession, with overall output falling by 0.3% compared to a year ago. While these figures are slightly better than expected, economists caution that it's too early to say if the recovery is sustainable.
