Outlook for global economic growth in 2024
According to a recent report from the United Nations, global economic growth is expected to slow in 2024. After a year marked by the Covid-19 pandemic, growth is expected to drop from 2.7% in 2023 to 2. 4% in 2024, which is below the pre-pandemic growth rate of 3%. However, despite this slowdown, there are positive signs that global inflation is expected to decline significantly from a rate of 5.7% in 2023 to 3.9% in 2024.
Nevertheless, the report highlights that price pressure remains high in many countries and that any further geopolitical conflict could lead to an increase in inflation. Indeed, in around a quarter of developing countries, annual inflation is expected to exceed 10% in 2024, which risks undermining the economic gains made after the post-pandemic recovery.
Among the challenges facing the global economy are persistently high interest rates, escalating conflicts, sluggish international trade and increasing climate disasters. These factors are contributing to declining economic growth in several major developed economies, including the United States, where high interest rates, slowing consumer spending and a weakened labor market are impacting growth.
The near-term growth outlook is also gloomy for many developing countries due to tighter financial conditions, reduced fiscal space and subdued external demand. However, Africa appears to be an exception with economic growth projected at 3.5% in 2024, up from 3.3% recorded in 2023. This upward trend is expected to continue, with economic growth projected at 4.2% in the long term.
In conclusion, although global economic growth faces significant challenges in 2024, there are positive signs regarding decreasing inflation. Africa also shows encouraging growth prospects. It is important that governments and policymakers take steps to promote financial stability, stimulate demand and foster international trade to support a sustainable global economic recovery.