 A container port in Shandong province, China. (Photo: XNA/ VNA) |
The UN’s report, World Economic Situation and Prospects 2024, released on Thursday said that weak global trade, high borrowing costs, rising public debt, and rising geopolitical tensions put global growth at risk. Growth in many developed economies, especially the US, is forecast to decrease this year due to high interest rates, weak consumer spending, and soften labor markets.
While the US economy performed remarkably well in 2023, the report said growth is expected to decline from an estimated 2.5% in 2023 to 1.4% this year.
Japan is projected to see economic growth slow from 1.7% in 2023 to 1.2% this year. GDP in the European Union is forecast to expand from 0.5% in 2023 to 1.2% in 2024.
The report forecast the short-term growth prospect of many developing countries, especially those in East Asia, West Asia, Latin America, and the Caribbean, would decrease due to tightening financial conditions, shrinking financial space, and stagnant external demand. The report said China’s economy growth would down moderately from 5.3% to 4.7% in 2024.
“In about a quarter of all developing countries, the annual inflation forecast for 2024 is over 10%” said Shantanu Mukherjee, Director of the UN Economic Analysis and Policy Division. “Hunger will continue to be a special concern because local food price and inflation remain high in many developing countries.”
Global economic growth will find it hard to return to the 3% average rate recorded before the COVID-19 pandemic, said Mukherjee.