World Economic Situation and Prospects Report for 2024

World Economic Situation and Prospects Report for 2024

News: Recently, a United Nations report titled World Economic Situation and Prospects report for 2024 forecasts a decline in global inflation in 2024. However, it warns of a rise in food inflation.

Key Findings:

Global Economic Outlook
• Global GDP growth is expected to decelerate from 2.7% in 2023 to 2.4% in 2024.

Regional Growth and India’s Projections
• South Asia estimated to grow by 5.2% in 2024, driven by robust expansion in India (6.2% projected growth).
• India’s growth will be supported by strong domestic demand, manufacturing, and services.

Key inflation trends
• Global headline inflation shows signs of easing, projected to decline from 5.7% in 2023 to 3.9% in 2024.
• Food price inflation remains critical, exacerbating food insecurity and poverty.
• Weak local currencies, climate-related shocks, and limited pass-through from international prices contribute to ongoing food inflation.

Global Investment Landscape
• Global investment growth expected to remain low due to economic uncertainties, high debt, and rising interest rates.
• Developed nations prioritize sustainable sectors, while developing nations grapple with capital flight and reduced foreign direct investment.
• Climate finance falls short, emphasizing the need for massive scaling up.

Trade and International Finance
• Global trade growth weakened to 0.6% in 2023, anticipated to recover to 2.4% in 2024.
• Rising external debt and increased interest rates hinder developing countries’ access to international capital markets. Debt sustainability becomes a critical concern, necessitating debt restructuring and relief efforts.