The prospects for the global economy have improved due to the strong performance of the United States and large emerging economies, especially Brazil, Russia and India – the three countries that are part of BRICS. However, vulnerabilities remain, said a UN report released on Thursday.
The world economy is expected to grow 2.7% in 2024 and 2.8% in 2025, according to the mid-year update of the World Economic Situation and Prospects report released in January. Projections for the first month of 2024 point to a global growth rate of 2.4% This year and 2.7% for 2025.
Despite small improvements, global growth is forecast to continue The report suggests that next year will be below the 3.2% average achieved during the 2010-2019 decade,
For the United States, the latest forecasts point to growth of 2.3% in 2024, 0.3 percentage points (pp) higher than projected in January. Brazil’s forecast rises 0.5pp to 2.1% in 2024. In 2025, the UN report points to growth of 2.4%, just 0.1pp more than the previous estimate.
India is expected to grow by 6.9% this year and 6.6% in 2025. For Russia, growth is estimated at 2.7% and 1.5%, respectively.
The outlook for China has seen a slight uptick, with growth now forecast to be 4.8% in 2024, compared to 4.7% in the January 2024 forecast.
Europe against the core of the global economy
Europe, shaken by sanctions imposed on Russia by the United States, is going against the grain. Although the economic outlook for developed economies has been revised down to 1.6% in 2024 from 1.3%, growth in the EU has been cut to 1% from 1.2%.
Africa and Western Asia are the other two regions that will see slower growth than before.
The report cautions that the outlook is only cautiously optimistic. Prolonged high interest rates, debt sustainability challenges, ongoing geopolitical tensions and worsening climate risks are posing challenges to development, threatening decades of development gains, especially for least developed countries and small island developing states. .
with Xinhua agency
