Arab News, Mon, Apr 22, 2024 | Shawwal 13, 1445
UNCTAD sees global growth rate 2.6% in 2024
RIYADH: Global economic growth is anticipated
to slow to 2.6 percent in 2024, with the UN Trade and Development agency
highlighting an uneven post-pandemic financial recovery among countries.
In its latest report, UNCTAD revealed that the prevailing focus on
inflation, which is overshadowing other critical issues like trade
disruptions, climate change, and rising inequalities, is driving the
economic slowdown in various countries.
The study also noted that Saudi Arabia’s economy is expected to increase by
2.7 percent in 2024, down 0.2 percent compared to its previous projection.
In Asia, China’s economy is projected to grow 5 percent in 2024, while
India’s output will expand by 6 percent, driven by substantial public
investment and service sector growth.
On the other hand, several European countries are expected to face an
economic slowdown in 2024, with France, Germany, and Italy expected to grow
at a moderate rate of 1.3 percent, 0.9 percent, and 0.8 percent,
respectively.
In North America, development remains relatively resilient, even though
challenges continue. The US economy is projected to grow at 2 percent in
2024, reflecting concerns over high household debt levels, UNCTAD added.
In South America, the economic growth is slowing, with Brazil expected to
develop at 2.1 percent, hampered by external pressures and commodity
dependence, while Argentina faces a 3.7 percent contraction due to inflation
and complex debt negotiations.
Additionally, the African economy will grow by 3 percent this year, with
armed conflicts and climate impacts posing significant risks to several
continental nations.
The report also added that inequality in the labor market continues to rise
post-pandemic, with workers in both developed and developing countries
earning a reduced share of income.
“This indicates that the benefits of economic growth are increasingly reaped
by capital owners rather than by workers, widening wage and wealth gaps,”
UNCTAD said.
Earlier this month, the International Monetary Fund revealed that global
economic growth, estimated at 3.2 percent in 2023, is projected to continue
at the same pace in 2024 and 2025.
IMF added that global headline inflation is forecasted to slip to 5.9
percent this year after 2023’s 6.8 percent average.
However, the IMF warned that it is still too early to declare victory in the
fight against inflation.