Global Economic Prospects 2024

Global Economic Prospects 2024

News: Recently, the World Bank (WB) has released its Global Economic Prospects Report, which states that the global economy may witness a poor performance by the end of 2024.

Key Findings:
• The global economy anticipates the slowest half-decade of GDP growth in thirty years, with a forecasted rate of 2.4% in 2024. Despite the receding risk of a global recession, geopolitical tensions pose fresh near-term hazards.
• The strength and revival of the US economy contributes to a better global economic position than the previous year, which means there is less risk of a recession.
• In context of many developing economies, the medium-term outlook looks bad, which is characterized by slowing growth, sluggish global trade, and tight financial conditions.
• Borrowing costs, especially for developing economies with low credit ratings, are expected to remain high.

Key Recommendations:
• The report calls for a ‘formidable’ increase in investment by developing countries, targeting approximately USD 2.4 trillion per year. This investment is crucial to address climate change and achieve key global development goals by 2030.
• Developing economies are urged to implement comprehensive policy packages, encompassing improvements to fiscal and monetary frameworks.
• Recommendations include the expansion of cross-border trade and financial flows, enhancements to the investment climate, and the strengthening of institutional quality.