Africa-Press – Uganda. The World Bank Group has stated that global economic growth is projected to slow for the third year in a row — from 2.6 per cent last year to 2.4 per cent in 2024.
The slower global economic growth affects both the advanced, emerging market economies, and developing countries in terms of low export demand, private capital remittance, and foreign direct investment among others.
Despite reducing global economic growth, the World Bank expressed optimism that by one measure, the global economy is in a better place than it was a year ago.
“The risk of a global recession has receded, largely because of the strength of the U.S economy. But mounting geopolitical tensions could create fresh near-term hazards for the world economy,” the World Bank stated in the Global Economic Prospects (GEPs) for 2024, released on January 9.
In advanced economies, meanwhile, growth is set to slow to 1.2 per cent this year from 1.5 per cent in 2023.
The World Bank said that developing economies are projected to decline to 3.9 per cent from 4.0 per cent in 2023.
It stresses that after a disappointing performance last year, low-income countries should grow by 5.5 per cent, weaker than previously expected.
Dr Indermit Gill, the World Bank Group’s Chief Economist and Senior Vice President said that without a major course correction, the 2020s will go down as a decade of wasted opportunity.
“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,” he said.
The World Bank recommends in the report that to tackle climate change and achieve other key global development goals by 2030, developing countries will need to deliver a formidable increase in investment—about $2.4 trillion per year.
The World Bank points out that without a comprehensive policy package, prospects for such an increase are not bright. Per capita investment growth in developing economies between 2023 and 2024 is expected to average only 3.7 per cent, just over half the rate of the previous two decades.
“Investment booms have the potential to transform developing economies and help them speed up the energy transition and achieve a wide variety of development objectives,” said Dr Ayhan Kose, the World Bank’s Deputy Chief Economist and Director of the Prospects Group.
Source: Monitor
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