The World Bank forecasts a third consecutive year of global economic slowdown in 2024, with an expected growth rate of 2.4%. This marks a decline from the 2.6% growth observed in 2023, 3% in 2022, and the robust 6.2% growth experienced in 2021 during the recovery from the pandemic-induced recession in 2020. The prediction emphasizes concerns about heightened global tensions, particularly stemming from events like Israel’s conflict with Hamas and the situation in Ukraine, which pose a risk of further dampening economic growth. World Bank officials express worry that heavily indebted poor countries may struggle to afford essential investments in climate change mitigation and poverty alleviation. Indermit Gill, the World Bank’s chief economist, noted that near-term growth prospects remain weak, leaving many developing countries, especially the poorest, facing challenges such as high levels of debt and precarious access to food for a significant portion of their populations.
The World Bank’s expectations for the United States include a deceleration in growth to 1.6% in 2024, influenced by higher interest rates that are expected to weaken borrowing and spending. The Federal Reserve’s 11 interest rate hikes since March 2022 contribute to this trend. Simultaneously, the World Bank anticipates a moderation in global inflation, projecting a decline from 5.3% in the previous year to 3.7% in 2024 and further to 3.4% in 2025. These economic trends highlight challenges that extend beyond individual countries, impacting both developed and developing nations alike.
Post Your Comments