Global growth projected to stabilize in 2024, with 80% of population experiencing slower growth compared to pre-COVID decade. Developing economies to grow at 4%, with challenges for small states.
Global Economic Stabilization Projected in 2024
The World Bank’s latest Global Economic Prospects report predicts that the global economy will stabilize in 2024 after three years of fluctuations. However, this stabilization is expected to be weaker than historical standards, with 80% of the world’s population experiencing slower growth compared to the pre-COVID decade.
Regional Variations and Uneven Recovery
The report highlights regional variations in global growth stabilization, with emerging markets and developing economies expected to grow faster than advanced economies. Despite this, risks such as high inflation and tightening financial conditions persist, contributing to the uneven recovery across different regions and income groups.
Developing Economies and Global Inflation Trends
Developing economies are projected to grow at a slower rate of 4% on average over 2024-25, while advanced economies are set to maintain steady growth before a slight rise. Global inflation is expected to moderate but remain at 3.5% in 2024 and 2.9% in 2025, impacting central bank decisions and global financial conditions. These trends indicate a complex economic landscape with challenges ahead for sustainable growth.
Source : Global Growth to Stabilize for the First Time in Three Years
