UN Forecasts Global Economic Slowdown in 2024 Amid Challenges

High interest rates, escalating conflicts, and climate disasters contribute to a somber economic outlook, with significant slowdowns expected in the U.S. and China.

The United Nations forecasts global economic growth to slow to 2.4% in 2024, down from an estimated 2.7% in 2023, citing challenges from escalating conflicts, sluggish global trade, high interest rates, and increasing climate disasters.
The U.S. economy, which performed well in 2023, is expected to see growth decline from an estimated 2.5% in 2023 to 1.4% in 2024 amid falling household savings, high interest rates, and a gradually softening labor market.
China's recovery from COVID lockdowns has been slower than expected, with growth expected to moderate to 4.7% in 2024, down from 5.3% in the second half of 2023.
In Europe, GDP is forecast to expand from 0.5% in 2023 to 1.2% in 2024, driven by a pick-up in consumer spending as price pressures ease, real wages rise, and labor markets remain robust.
In South Asia, GDP rose by an estimated 5.3% last year and is projected to increase by 5.2% in 2024, driven by a robust expansion in India, which remains the fastest growing large economy in the world.