Global economic growth will slow to 2.4% in 2024, down from 2.7% last year, the UN reports. The organization notes that high interest rates, further escalation of conflicts, sluggish international trade, and climate disasters pose serious obstacles to global growth.
Experts predict a long period of tight lending conditions and high borrowing costs. In their opinion, the debt-ridden global economy requires additional investment.
“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,” says UN Secretary-General Antonio Guterres.
The UN forecasts that growth will slow in 2024 in several advanced economies, especially the U.S., given high interest rates, lower consumer spending, and a worsening labor market.
Near-term growth prospects for many emerging economies - especially in Latin America and Asia - are also weakening due to tightening financial conditions, shrinking fiscal space, and weak external demand. In particular, it is predicted that in 2024, economic growth in China will slow down to 4.7%.
The economic prospects of low-income countries will be limited by heavy debt burdens, high interest rates, and losses associated with extreme weather events caused by climate change.
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