Global GDP set for slowdown in 2024, before return to resilient growth: OECD 

Global GDP set for slowdown in 2024, before return to resilient growth: OECD 
Global GDP set for slowdown in 2024, before return to resilient growth: OECD 

Thank you for reading the news about Global GDP set for slowdown in 2024, before return to resilient growth: OECD  and now with the details

Jeddah - Yasmine El Tohamy - RIYADH: Persistent inflation and a slowdown are set to push global gross domestic product growth down 0.2 percentage points to 2.7 percent in 2024, with an anticipated increase to 3 percent in 2025, a new report showed.  

According to the Organization for Economic Co-operation and Development, the global economy is facing tighter financial conditions, weak international trade, and lower confidence among businesses and consumers, despite stronger-than-expected growth in 2023. 

The report noted that housing markets and economies relying on bank-based finance, especially in Europe, are experiencing a slowdown, while geopolitical tensions are contributing to uncertainty in the short-term outlook. 

It emphasized that while headline inflation has decreased in most economies, core inflation remains relatively high.  

Emerging-market economies are expected to maintain better growth than advanced economies, with Europe experiencing relatively subdued growth compared to North America and major Asian economies. 

Risks to the global outlook include heightened geopolitical tensions, rising trade restrictions, and potential disruptions to energy markets and trade routes.  

The OECD warned that continuation of cost pressures, increases in energy and food prices, or a drift in inflation expectations could lead to central banks maintaining higher policy rates, impacting financial markets. 

The report stated that key recommended policy priorities include ensuring a durable reduction of inflation, addressing fiscal pressures, and enhancing prospects for sustainable and inclusive growth.   

“Monetary policy needs to remain restrictive in most advanced economies until inflation declines durably,” it added.  

Governments need to manage rising fiscal pressures by withdrawing or better targeting fiscal support measures and implementing credible medium-term fiscal frameworks.  

The OECD stressed that enhanced multilateral cooperation is essential for reviving global trade, and structural reforms are needed to reinvigorate growth, particularly in the face of challenges from aging populations, climate transition, and digitalization.  

In summary, the global economy is projected to experience a mild slowdown with a gradual return to near-trend growth rates, and inflation converging back to central bank targets by 2025. 

The outlook depends on various factors, including geopolitical developments, trade dynamics, and the effectiveness of policy responses.  

These were the details of the news Global GDP set for slowdown in 2024, before return to resilient growth: OECD  for this day. We hope that we have succeeded by giving you the full details and information. To follow all our news, you can subscribe to the alerts system or to one of our different systems to provide you with all that is new.

It is also worth noting that the original news has been published and is available at Arab News and the editorial team at AlKhaleej Today has confirmed it and it has been modified, and it may have been completely transferred or quoted from it and you can read and follow this news from its main source.

NEXT WTO’s Ministerial Conference in Abu Dhabi to address decentralization of global supply chains

Author Information

I am Joshua Kelly and I focus on breaking news stories and ensuring we (“Al-KhaleejToday.NET”) offer timely reporting on some of the most recent stories released through market wires about “Services” sector. I have formerly spent over 3 years as a trader in U.S. Stock Market and is now semi-stepped down. I work on a full time basis for Al-KhaleejToday.NET specializing in quicker moving active shares with a short term view on investment opportunities and trends. Address: 838 Emily Drive Hampton, SC 29924, USA Phone: (+1) 803-887-5567 Email: [email protected]