A new chapter is unfolding in 2024, according to the Mastercard Economics Institute (MEI), with consumers and corporations facing, at times, difficult decisions about spending and investing. With interest rates, wages and prices high relative to pre-pandemic trends, we will all have to prioritize resources carefully.
While MEI sees continued momentum in spending on experiences and self-care through the end of 2023, growth rates in 2024 are unlikely to be as impressive given harder comps. Impulse spending, which is less intentional and thought of as an add-on to a shopping trip, could continue to struggle in 2024.
This will result in a less bifurcated spending basket than in 2023, although there still will be clear differentiation, especially given relative price differentials and the trade-offs consumers will make.
Join this Mastercard Economics Institute webinar to hear Mastercard's Chief Economist Michelle Meyer discuss the economic trends expected to play out in North America in 2024 including:
- Consumer resilience during the past few years will continue but a slowdown in overall growth is likely.
- Inflationary pressure has greatly diminished, supporting consumer purchasing power but dampening retail pricing power.
- As high interest rates transmit into the economy, corporates and consumers will increasingly respond to higher borrowing costs.
This webinar will take place on January 10, 2024 at 1:00pm (EST).
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