Global economic growth estimated to slow to 2.4 per cent in 2024 - UN report

05 Jan 2024 07:00pm
Pix for illustration purpose only. - FILE PIX
Pix for illustration purpose only. - FILE PIX

WASHINGTON - Global economic growth is projected to decline from an estimated 2.7 per cent in 2023 to 2.4 per cent in 2024, according to a UN report released Thursday.

The World Economic Situation and Prospects report said growth is forecast to improve moderately to 2.7 per cent in 2025 but will remain below the pre-pandemic trend growth rate of 3.0 per cent.

Global inflation is projected to decline further, from an estimated 5.7 per cent in 2023 to 3.9 per cent in 2024, Anadolu Agency citing the report said.

"But price pressures are still elevated in many countries and any further escalation of geopolitical conflict will add to that," it added.

In about a quarter of all developing countries, annual inflation is projected to exceed 10 per cent in 2024, the report highlighted.

The US is expected to see a drop in gross domestic product (GDP) growth from 2.5 per cent in 2023 to 1.4 per cent in 2024, it said, adding China is projected to experience a moderate slowdown with growth estimated at 4.7 per cent in 2024, down from 5.3 per cent last year.

According to the report, Europe and Japan also face challenges with growth rates forecasted at 1.2 per cent for both regions in 2024.

Meanwhile, Africa’s growth rate is projected to slightly increase from 3.3 per cent in 2023 to 3.5 per cent in 2024.

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UN Secretary-General Antonio Guterres said that the report makes it clear that 2024 is projected to be "another tough year", according to Anadolu. 

Sluggish global growth is projected to slow further. Investment will remain weak.

The debt crisis will continue to spiral, as debt service obligations reach new heights, he said, adding devastating conflicts and escalating extreme weather are bringing uncertainty and risk to the global economy.

"2024 must be the year when we break out of this quagmire.

By unlocking big, bold investments we can drive sustainable development and climate action, and put the global economy on a stronger growth path for all," Guterres said. - BERNAMA-ANADOLU AGENCY