United Nations – World Economic Situation & Prospects, 2024

According to the United Nations World Economic Situation and Prospects (WESP) 2024 report, global economic growth is expected to slow from 2.7% in 2023 to 2.4% in 2024, falling below the pre-pandemic growth rate of 3.0%. The report highlights that despite exceeding expectations in 2023, last year's stronger-than-expected GDP growth concealed short-term risks and structural vulnerabilities. The UN report presents a gloomy economic outlook for the near future, citing persistently high interest rates, escalating conflicts, sluggish international trade, and increasing climate disasters as significant challenges to global growth. The prospects of continued tight credit conditions and higher borrowing costs present obstacles for an already debt-laden world economy, which requires more investment to stimulate growth, combat climate change, and achieve the Sustainable Development Goals (SDGs). United Nations Secretary-General António Guterres urges bold investments to drive sustainable development, climate action, and global economic growth. He calls for the promotion of an SDG Stimulus of at least $500 billion per year in long-term financing for sustainable development and climate action. The report also highlights subdued growth in both developed and developing economies. Growth is expected to slow in large developed economies like the United States, mainly due to high interest rates, decreasing consumer spending, and weaker labor markets. Developing countries, particularly those in East Asia, Western Asia, Latin America, and the Caribbean, are facing deteriorating short-term growth prospects as a result of tighter financial conditions, limited fiscal space, and sluggish external demand. The report also notes that low-income and vulnerable economies are experiencing increasing pressures on balance-of-payments and debt sustainability. Additionally, small island developing states face heavy debt burdens, high interest rates, and climate-related vulnerabilities that threaten the progress made on the SDGs. Furthermore, the report mentions that global inflation is projected to decrease from 5.7% in 2023 to 3.9% in 2024. However, inflation remains elevated in several countries, and any escalation of geopolitical conflicts could trigger renewed increases in inflation. The report also highlights the negative impact of high inflation on poverty eradication, especially in the least developed countries. Additionally, the report mentions that although labor markets in developed economies have shown resilience, many developing countries, particularly in Western Asia and Africa, have not yet recovered employment rates to pre-pandemic levels. The report also emphasizes the persistence of the global gender employment gap and widening gender pay gaps in some occupations. The report concludes by calling for strengthened global cooperation, reform of development finance, debt resolution, and increased climate financing to support vulnerable countries in achieving sustainable and inclusive growth.