Turkey’s Global Growth Forecast from World Bank: Latest Economic Update
The World Bank has recently published the January 2024 issue of the Global Economic Expectations Report, which provides insight into the current state of the global economy and its future outlook.
The report has highlighted that the global economy is expected to experience the slowest 5-year Gross Domestic Product (GDP) growth in the last 30 years by the end of 2024. Despite noting that the global economy is in a better place than it was a year ago, the report also emphasizes the potential dangers posed by increasing geopolitical tensions in the short term.
One of the key findings of the report is that global trade growth is anticipated to be only half of the average seen in the 10 years before the pandemic. Additionally, borrowing costs for developing economies are likely to remain high, and global interest rates adjusted for inflation are expected to be at their highest levels in the last 40 years.
The report also forecasts a slowdown in global growth for the third consecutive year, with estimates of 2.4 percent growth in 2024 and 2.7 percent in 2025, down from 2.6 percent in the previous year. The growth expectation for developed countries is even lower, at 1.2 percent.
In light of these predictions, World Bank Group President Ajay Banga emphasized the importance of creating employment opportunities to reduce poverty and spread prosperity, particularly in the face of slower economic growth.
The report also underlines the need for developing countries to increase investments by approximately 2.4 trillion dollars annually in order to combat climate change and achieve other fundamental global development goals by 2030.
World Bank Group Chief Economist and Senior Vice President Indermit Gill highlighted the precarious state of the world economy, pointing out that debt pressures have increased in emerging markets and developing economies due to high interest rates.
Deputy Chief Economist of the World Bank Group, Ayhan Köse, stressed the importance of immediate action by policymakers in developing economies to prevent financial contagion and reduce short-term internal vulnerabilities.
Overall, while the Global Economic Expectations Report paints a challenging picture of the global economy in the near future, it also emphasizes the potential for collaborative efforts to turn the situation around and foster sustainable growth and development.
