The United Nations (UN) released its World Economic Situation and Prospects (WESP) report for 2024, which forecast a slowdown in global growth from an estimated 2.7% in 2023 to 2.4% in 2024. Although the COVID-19 pandemic caused the GDP to grow more quickly in 2023 than was predicted, the research warns of near-term risks and structural weaknesses in the global economy.
The somber outlook for 2024 is attributed to persistently high interest rates, escalating conflicts, sluggish international trade, and an increasing frequency of climate disasters. These challenges pose significant obstacles to global growth and highlight the need for increased investments to stimulate growth, combat climate change, and accelerate progress towards the Sustainable Development Goals (SDGs).
UN Secretary-General António Guterres emphasized the importance of unlocking substantial investments in sustainable development and climate action to strengthen the global economy. He called for building on the progress made in the past year towards a stimulus of at least $500 billion per year for investments in sustainable development and climate action.
The report projects a global decline in inflation from an estimated 5.7% in 2023 to 3.9% in 2024, although price pressures remain elevated in many countries. Geopolitical conflicts could further exacerbate the inflation situation, with about a quarter of developing countries projected to experience annual inflation exceeding 10% in 2024.
Consumer prices in developing economies have surged by a cumulative 21.1% since January 2021, significantly impacting the economic gains achieved following the COVID-19 recovery. Li Junhua, Head of the UN’s Department of Economic and Social Affairs (DESA), emphasized the need for global cooperation, reforming development finance, addressing debt challenges, and scaling up climate financing.
The report highlighted specific economic forecasts, including a projected decline in GDP growth for the United States from 2.5% in 2023 to 1.4% in 2024. China is expected to experience a moderate slowdown, with growth estimated at 4.7% in 2024. Both Europe and Japan face growth challenges, with rates predicted at 1.2% for both regions in 2024.
Oreoluwa is an accountant and a brand writer with a flair for journalism.
