The global economy is heading towards its most challenging half-decade of growth in three decades, as forecasted by the World Bank.
According to the latest “Global Economic Prospects” report released on Tuesday, global growth is anticipated to decelerate for the third consecutive year in 2024, dropping to 2.4% from 2.6% in 2023.
Although there is a slight projected uptick to 2.7% in 2025, the overall growth trajectory remains significantly below the average rate of the 2010s, reflecting the worst half-decade of growth in 30 years. The report cites increased geopolitical tensions as a new challenge, potentially slowing down most economies in 2024 and 2025 compared to the previous decade.
The World Bank highlighted ongoing conflicts, including the Russian invasion of Ukraine and tensions in the Middle East, as potential contributors to economic uncertainties. Ayhan Kose, the World Bank’s deputy chief economist, emphasized the potential impacts on energy prices, inflation, and economic growth in the face of escalating conflicts.
The report emphasizes the need for a “major course correction” to avoid the 2020s being labeled as “a decade of wasted opportunity” in terms of global economic growth.
