High interest rates, further escalation of conflicts, sluggish global trade and an increase in natural disasters pose major challenges to global economic growth.
Global economic growth in 2023 will slow from 2.7% to 2.4% this year, according to the UN Department of Economic and Social Affairs. On Thursday, January 4, a report on the global economic situation and prospects for 2024 was published there, reports Ukrinform.
It was noted that “the UN report gives gloomy economic forecasts for the near future.” “A prolonged period of high interest rates, further escalation of conflicts, sluggish international trade and an increase in natural disasters related to climate change pose serious challenges to global economic growth ,” said UN economists.
It is also predicted that in some large developed countries, especially the United States, economic growth will be constrained by high interest rates, slowing consumer spending and a weakening labor market. Near-term growth prospects in many developing countries, particularly in East and West Asia and Latin America and the Caribbean, are also weakening due to weak fiscal conditions, financial constraints and weak external demand.
Global inflation will decline from around 5.7% in 2023 to 3.9% in 2024. However, further escalation of geopolitical conflicts may set back its growth.
In comparison, before the COVID-19 pandemic, annual economic growth was around 3%.
It was previously reported that the US national debt reached a new historic high and exceeded $34 trillion.
What awaits the global economy next year?
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.