Global economic growth estimated to slow to 2.4% in 2024 – UN report

Global inflation is projected to decline further, from an estimated 5.7 percent in 2023 to 3.9 percent in 2024, the report said. (Pexels Photo)

WASHINGTON – Global economic growth is projected to decline from an estimated 2.7 percent in 2023 to 2.4 percent 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 percent in 2025 but will remain below the pre-pandemic trend growth rate of 3 percent.

Global inflation is projected to decline further, from an estimated 5.7 percent in 2023 to 3.9 percent in 2024, 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 percent in 2024, the report highlighted.

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

According to the report, Europe and Japan also face challenges with growth rates forecast at 1.2 percent for both regions in 2024. Meanwhile, Africa’s growth rate is projected to slightly increase from 3.3 percent in 2023 to 3.5 percent in 2024.

UN Secretary-General Antonio Guterres said the report makes it clear that 2024 is projected to be “another tough year.”

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.

Türkiye’s economic growth

The authorities in Türkiye “aggressively” tightened monetary policy to rein in inflation, according to the report.

“Economic growth in Türkiye is estimated to have slowed from 5.5 percent in 2022 to 3.5 percent in 2023 and is expected to decline further, to 2.7 percent in 2024,” the report said.

Highlighting that early in 2023, the country was struck by a series of earthquakes that resulted in widespread damage and tens of thousands of fatalities, the report said in terms of GDP, the reconstruction spending in the earthquake-stricken regions partially offset the disruption in economic activity.

According to the report, Türkiye’s inflation is expected to ease in 2024 but will remain in the double digits until 2025. (Anadolu)