Global economy will rack up a sorry record by the end of 2024: World Bank report
World Bank’s latest Global Economic Prospects report. “Without a major course correction, the 2020s will go down as a decade of wasted opportunity," said Indermit Gill, the World Bank Group’s Chief Economist and Senior Vice President. “Near-term growth will remain weak, leaving many developing countries—especially the poorest—stuck in a trap: with paralyzing levels of debt and tenuous access to food for nearly one out of every three people.
That would obstruct progress on many global priorities. Opportunities still exist to turn the tide. This report offers a clear way forward: it spells out the transformation that can be achieved if governments act now to accelerate investment and strengthen fiscal policy frameworks." Global growth is projected to slow for the third consecutive year, reaching 2.4 per cent in 2024, down from 2.6 per cent in 2023.
Among global economies, developing countries’ economies will be hit harder, growing at just 3.9 per cent, far below their pre-pandemic average. Low-income countries will also see weaker growth than anticipated, at 5.5 per cent. By 2024 end, 25 per cent of developing countries and 40 per cent of low-income countries will still be poorer than in 2019 pre-pandemic levels.
At the same time, the picture does not look well for developed countries, either. Growth in advanced economies will also slow, reaching 1.2 per cent in 2024 from 1.5 per cent in 2023. India’s growth is anticipated to edge up to 6.4 per cent in FY2024-25, fueled by robust public investment and healthier corporate finances.
Investments might show a slight slowdown but remain strong overall. Bangladesh’s growth is seen dipping to 5.6 per cent in FY2023-24. High inflation and import restrictions could dampen private
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