The latest updates on world economy, in 5 charts
Mint’s Plain Facts section brings out an update on key global economic data to thread together the biggest developments in the world that are worth paying attention to. The accompanying analysis and charts explain how each story is creating ripples on the global stage, where it is headed in the coming weeks, and whether it can impact India. This time, we explain how monetary policies have diverged around the world and why the debt situation has become a reminder of the Napoleonic Wars.
The global economy witnessed a slowdown in 2023 and some countries even had recession knocking on their doors. The trajectory is likely to hold steady in 2024—which means it will still be weaker than the pre-pandemic trend, the Organisation for Economic Co-operation and Development (OECD) said in its latest Economic Outlook. Growth will be led mainly by Asian emerging markets India, Indonesia and China, while the UK and Germany, whose economies shrank at least once in 2023, are likely to record a mere 0.4% and 0.2% growth in 2024.
Among G20 nations, only Saudi Arabia and Argentina have worse forecasts. On one hand, the global economy is proving resilient to tight monetary policy, inflation is showing signs of easing, and economic risks are receding, but the sustained signs of slowdown need macroeconomic efforts by policymakers across the world—from prudent monetary policy to investment- and jobs-focused reforms, the OECD said. During the pandemic, central banks globally had delivered coordinated interest rate cuts, but are now diverging on their policy response to suit their macroeconomic situation.
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