From Fortune:

The United Nations released a grim forecast for the global economy in 2024, citing challenges such as escalating conflicts, sluggish trade, high interest rates, and climate disasters. World economic growth is projected to slow to 2.4%, down from 2.7% in 2023 and below the 3% pre-pandemic rate. The International Monetary Fund and the OECD also anticipate slower global growth.

According to the U.N. report, very high interest rates and the possibility of inflation shocks complicates the economic environment. The world faces a significant risk due to volatility in the global economy while a quarter of developing nations are projected to have annual inflation rates exceeding 10% this year. The U.S. economy, on the other hand, performed unusually well, but growth is expected to decline.

In Europe, the economic outlook is challenging, with the GDP of the EU forecast to expand moderately with increased consumer spending, rising real wages, and robust labor markets. Meanwhile, China is experiencing a gradual recovery from COVID-19 lockdowns and lower growth is projected due to weakened property markets and faltering external demand.

The U.N. also projects only slight increases in economic growth in Africa and East Asia, with the unfolding climate crisis and geopolitical instability undermining progress. However, South Asia, particularly India, remains a bright spot with a robust expansion and the fastest-growing large economy in the world.



Read more: UN projects 2.4% global economic growth for 2.4%