The global economy is set to hit a grim record by the end of 2024, the lowest half-decade GDP growth in 30 years according to World bank’s latest global economic prospect report.
Economic performance in the first half of the 2020s is on track to be even worse than the aftermath of the financial crisis and other downturns since the early 1990s, the report suggests.
Despite global growth being projected to slow for the third year in a row (from 2,6 percent last year to 2,4 percent in 2024), the Washington-based organization is confident the global economy is in a better place than it was a year ago.
It believes the prospect of a global recession has receded, largely because of the strength of the US economy. However, it warns that rising geopolitical tensions, particularly as a result of Israel’s war with Hamas and the conflict in Ukraine, pose a risk of even weaker growth.
“Without a major course correction, the 2020s will go down as a decade of wasted opportunity,” world bank’s chief economist Indermit Gill said. “Near-term growth will remain weak, leaving many developing countries, especially the poorest stuck in trap: with paralyzing levels of debt and tenuous access to food for nearly one out of every three people,” he added.
That would obstruct progress on many global priorities including climate change, he said. However, Gill believes there are still opportunities to turn the tide.