EMEA Living Investor Survey 2024

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EMEA LIVING INVESTOR SURVEY

ONLY MODESTLY LOWER INTEREST RATES EXPECTED DESPITE A SLIGHTLY WEAKER EUROPEAN ECONOMY IN 2024 08

PERHAPS NOT SURPRISINGLY, THE MAJORITY OF INVESTORS WE SURVEYED SAW THE ECONOMIC PICTURE REMAINING SLUGGISH IN 2024 WITH 60% OF THEM SAYING THEY EXPECTED THE MAIN EUROPEAN ECONOMIES TO WEAKEN SLIGHTLY THIS YEAR. This is broadly in line with our EMEA house view for the UK and Euro area economies this year where we see economic growth rates remaining subdued with the risk of a shallow recession.

However, despite a somewhat gloomy investor outlook for growth in 2024 this doesn’t translate into much by way of optimism around how much interest rates could be cut in 2024. Overall, we found that 62% of respondents expected interest rates to fall by only up to 50 basis points with only 26% anticipating a more aggressive rate cut scenario (rates cut by 100-150 basis points).

HOW DO YOU THINK INTEREST RATES ARE MOST LIKELY TO CHANGE IN THE NEXT TWELVE MONTHS?

12% NO CHANGE

62% DECREASE BY 0% TO 0.5%

26% DECREASE BY 0.5% TO 1.5%

Source: Cushman & Wakefield, February 2024