The World Bank expects the global economy to achieve stable growth rates for the first time in three years in 2024
anticipation The World Bank, in The economic outlook report released today, Tuesday The growth rate in the Middle East and North Africa region will rise to 2.8% in 2024 and continue to rise to reach 4.2% in 2025.
The World Bank attributed this mainly to the gradual increase in oil production and improved activity since the last quarter of 2024. Expectations for 2024 are lower compared to what was expected in January, and this reflects the impact of extending oil production cuts in and the ongoing conflict in the region.
The report expected Saudi Arabia to achieve growth of 2.5% in 2024 and 5.9% in 2025, while the UAE was expected to achieve growth of 3.9% in 2024 and 4.1% in 2025.
The World Bank expected that the global economy would achieve stable growth rates for the first time in three years in 2024, but at weak levels by modern historical standards.
The bank also expected global growth to remain stable at 2.6% in 2024 before rising to 2.7% on average in the period 2025-2026, which is much lower than the average of 3.1% in the decade before the outbreak of the Corona pandemic.
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These forecasts indicate that, over the period 2024-2026, countries that together account for more than 80% of the world’s population and global GDP will continue to grow at a slower pace than in the decade before the pandemic.
Overall, developing economies are expected to grow by 4% on average over the period 2024-2025, slightly slower than in 2023.
Growth in low-income economies is also expected to accelerate to 5% in 2024, up from 3.8% in 2023. However, growth forecasts for 2024 reflect a downward revision in expectations in three out of four low-income economies since January. As for advanced economies, the growth rate is expected to remain stable at 1.5% in 2024 before rising to 1.7% in 2025.
Indermit Gill, Chief Economist at the World Bank Group and Senior Vice President, said: “Four years after the turmoil caused The Corona pandemic, conflicts, inflation, and tightening monetary policies, global economic growth appears to be stabilizing… but it is at lower levels than it was before 2020. Indeed, the future prospects for the world’s poorest economies are even more worrying, as they face severe levels of service.
Debt, narrowing trade opportunities, and severe, high-cost weather events. Developing economies must find ways to encourage private investment, reduce public debt, and improve education, health services and basic infrastructure. The poorest countries, especially the 75 countries eligible for assistance on concessional terms from the International Development Association, will not be able to advance these areas without international support.”
He expected the global inflation rate to decline to 3.5% in 2024 and to 2.9% in 2025, but at a slower rate of decline than expected just six months ago. As a result, it is expected that many central banks will remain cautious in lowering key interest rates. Global interest rates are likely to remain high by the standards of recent decades – averaging about 4% over the period 2025-2026, almost double the average of 2000-2019.
