The US economy grew by 4.9% q/q in Q3, beating expectations of 4.5% growth, with strong consumer spending recorded across all segments. This level of economic resilience is unlikely to be sustained – we forecast annual GDP will grow by 2% in 2023 and 1-1.2% in 2024 - but it may imply a need to raise US interest rates further. By contrast, in the euro area, the European Central Bank’s decision to hold interest rates unchanged at 4.5% to rein in inflation is likely to put various economies, including Germany, under significant pressure. Click here to listen to STANLIB’s Chief Economist, Kevin Lings, discuss the trends.