The Cabinet’s Information and Decision Support Center said on Sunday 22/12/2024 a global economy slowdown was reported in 2024 prompted by economic, geopolitical and climate challenges in light of growing bank interest rate and repercussions of Israeli war on Gaza and Russian war on Ukraine.
A report by the center monitoring performance of global economy in 2024 showed that global economy preserved its resilience in 2024, avoiding recession despite strict monetary policies.
Citing the IMF estimates, global economy will slow from 3.3 percent in 2023 to 3.2 percent in 2024/2025.
The report referred to UN Trade and Development (UNCTAD) forecasts that showed that global economic growth to slow to 2.6 percent in 2024, just above the 2.5 percent threshold commonly associated with a recession.
This marks the third consecutive year of growth below the pre-pandemic rate, which averaged 3.2 percent between 2015 and 2019.
U.S. growth is expected to slow, with the IMF forecasting it to reach 2.8 percent in 2024, down from 2.9 percent in 2023, and to further slow to 2.2 percent in 2025. In the eurozone, the economy is projected to grow from 0.4 percent in 2023 to 0.8 percent in 2024 and 1.2 percent in 2025. In the United Kingdom, growth is expected to rise to 1.1 percent in 2024, up from 0.3 percent in 2023.
For Japan, growth is expected to slow in 2024 to 0.3 percent, down from 1.7 percent in 2023. In Canada, the economy is projected to grow from 1.2 percent in 2023 to 1.3 percent in 2024, reaching 2.4 percent in 2025.
According to the report, Standard & Poor’s (S&P) projects Japan’s economy to recover in 2025, with growth near 1 percent, while the United Kingdom’s economy will grow by 1.5 percent. In major emerging markets, India is expected to be a key driver of global growth, with its growth forecast at 7 percent or lower in the coming years. Brazil and Mexico’s economies are expected to grow by about 2 percent in 2025, while South Africa’s economy is projected to grow by about 1.5 percent.
