The World Bank, in its latest Global Economic Prospects report, issued 9 January, predicts a third straight year of global economic slowdown, from 2.6% for 2023 to 2.4% for 2024. This comes as “mounting geopolitical tensions could create fresh near-term hazards for the world economy,” with attacks in the Gulf of Suez threatening global trade (MEES, 5 January). “Downside risks to the outlook include an escalation of the recent conflict in the Middle East and associated commodity market disruptions,” the Bank adds.
The first half of the 2020s “is set to rack up a sorry record… [of] the slowest half-decade of GDP growth in 30 years,” the Bank says. On the positive side, “the risk of a global recession has receded” versus a year ago “largely because of the strength of the US economy,” which is forecast to grow by 1.6% this year, double the 0.8% projection made seven months earlier. (CONTINUED - 327 WORDS)
