According to a new report from the World Bank, the global economy is expected to stabilize in 2024, marking the first time in three years that this has occurred. However, this stabilization is projected to be weaker than in previous recoveries due to factors such as inflation, higher interest rates, trade tensions, and geopolitical issues. This may result in a decade that is slower in terms of economic growth compared to the previous one.
Several experts have weighed in on this topic, including William Lee, a Chief Economist at the Milken Institute, Yan Liang, a Chair Professor at Willamette University specializing in international trade, finance, and economics, John Gong, a Professor at the University of International Business and Economics, and Otaviano Canuto, a former Vice President at the World Bank who currently serves as a Senior Fellow at the Policy Center for the New South.
The World Bank tweeted about the insights gained from Ayhan Kose, Deputy Chief Economist, in analyzing the Global Economic Prospects for 2024, noting that the stabilization of the global economy is expected to be weaker than in previous years. Meanwhile, the World Economic Forum also shared updates from the World Bank’s report on the global economy and the decision by the US Federal Reserve to maintain interest rates.
Overall, the outlook for the global economy in 2024 is one of stabilization, but at a weaker level compared to past recoveries. Experts and organizations are closely monitoring factors such as inflation, interest rates, trade tensions, and geopolitical dynamics to better understand the potential challenges and opportunities that lie ahead.