Global economy set to slow for 3rd consecutive year in 24

The global economy is set to slow for the third year in a row from 2.6 per cent in 2023 to 2.4 per cent in 2024, according to the World Bank’s latest Global Economic Prospects report.

The World Bank believes the prospect of a global recession has receded, largely because of the strength of the U.S. economy. It warns that rising geopolitical tensions, particularly as a result of Israel‘s war and the conflict in Ukraine, pose a risk of even weaker growth.

The recent conflict in the Middle East has heightened geopolitical risks and raised uncertainty in commodity markets, with potential adverse implications for global growth, the report said.

Intensification of these conflicts, or increasing geopolitical tensions elsewhere, could have adverse global repercussions through commodity and financial markets, trade, and confidence.