Global economic slowdown predicted for third straight year: World Bank

The World Bank predicted on Tuesday that the global economy will slow for the third consecutive year in 2024.

World Bank struggles with global high interest rates, inflation, and sluggish Chinese economy predict the world economy This year's growth rate is only 2.4%. That would be down from 2.6% in 2023, 3% in 2022 and 6.2% in 2021, which was boosted that year by the recovery from the coronavirus pandemic.

The World Bank predicted that U.S. growth will also slow, falling from 2.5% in 2023 to 1.6% in 2024.

Indermit Gill, chief economist at the World Bank, said: “Near-term growth remains weak and many developing countries, especially the poorest, are trapped, with paralyzing levels of debt and almost one in three people “This will make it difficult for people to access food.” stated in a statement.

The World Bank predicted slower growth and instability, citing escalating global tensions, particularly from the ongoing Russia-Ukraine war and the Israel-Hamas war in the Gaza Strip.

“As the world approaches the midpoint of what was intended as a decade of transformational development, the global economy will accumulate a disappointing record by the end of 2024, the lowest five-year GDP in 30 years. growth rate,” the organization said in a statement.

While the U.S. economy remains strong and domestic inflation continues to slow, much of the global economy remains weak. A slowdown in global trade is projected to hinder growth in many regions of the world.

This also applies to developing countries, where high interest rates make it difficult to borrow money, slowing investment and growth, the World Bank said. Growth in developing countries is projected to be just 3.9 percent, one percentage point below his 10-year average for the 2010s.

The World Bank estimates that by the end of 2024, about a quarter of people in developing countries and 40% of people in low-income countries will be poorer than they were on the eve of the 2019 coronavirus pandemic. ” he said.

“Without a major course correction, the 2020s will end as a decade of wasted opportunities,” Gill continued.

However, there is also good news that the US economy is lifting the slump in other countries. The Fed's effective inflation management will reduce domestic inflation to near its 2% target, and global inflation will fall from 5.9% in 2023 to 3.7% in 2024 and 3.4% in 2025. It is expected.

U.S. inflation fell to 3.1% last month, down from 6.4% in January last year, according to Labor Department data.