ECONOMY
The United Nations has issued a bleak global economic projection for 2024, citing obstacles such as
intensifying conflicts, slow global trade, stubbornly high interest rates, and rising climate disasters.
The UN predicted that global economic growth will fall to 2.4% this year from an estimated 2.7% in
2023 in its flagship economic report, which exceeded expectations.
However, both are still below the 3% growth rate before the COVID-19 epidemic began in 2020, according to the report.
The UN prediction is lower than that issued by the IMF in October and the Organization for Economic
Cooperation and Development in late November.
According to the IMF, global growth will decline from 3% in 2023 to 2.9% in 2024. The Paris-based OECD, which represents 38 primarily industrialized countries, forecasted that international growth would decline from 2.9% in 2023 to 2.7% in 2024.
The United Nations’ World Economic Situation and Prospects 2024 report warned that the prospect
of prolonged tighter credit conditions and higher borrowing costs present strong headwinds for a
global economy burdened with debt, particularly in poorer developing countries, and in need of
investment to resuscitate growth.
According to the analysis, worldwide inflation, which was 8.1% in 2022, is expected to fall to 5.7% in
2023 and 3.9% in 2023, from 8.1% in 2022.
However, annual inflation is expected to exceed 10% in about a fifth of all developing countries this year, according to the report. While the US economy fared remarkably well in 2023, growth is anticipated to fall from an estimated 2.5% in 2023 to 1.4% this year, according to the research.
Despite the country’s monetary and fiscal policies, Japan’s economic growth is expected to slow
from 1.7% in 2023 to 1.2% this year, according to the report.
The UN said recovery from COVID lockdowns in China, the world’s second-largest economy, has been slower than projected amid domestic an international headwinds.
