UN Report: Global Economic Growth Slows, Inequality Rises

The United Nations Trade and Development agency has projected a slowdown in global economic growth to 2.6 percent in 2024. This deceleration is attributed to an uneven post-pandemic financial recovery among countries, with a predominant focus on inflation overshadowing other critical issues such as trade disruptions, climate change, and rising inequalities.

Saudi Arabia's economy is forecasted to grow by 2.7 percent in 2024, a slight decrease from previous estimates. In Asia, China is expected to see a 5 percent growth, while India's output is set to expand by 6 percent driven by public investment and service sector growth. On the other hand, European countries like France, Germany, and Italy are anticipated to experience moderate growth rates of 1.3 percent, 0.9 percent, and 0.8 percent, respectively.

North America's development remains relatively resilient, with the US economy projected to grow at 2 percent in 2024. South America faces economic challenges, with Brazil expected to grow at 2.1 percent and Argentina facing a 3.7 percent contraction due to inflation and debt negotiations. In Africa, economic growth is expected to reach 3 percent, but risks from armed conflicts and climate impacts persist.

The report highlights a concerning trend of rising inequality in the labor market post-pandemic, with workers in both developed and developing countries receiving a reduced share of income. The International Monetary Fund projects global economic growth to continue at 3.2 percent in 2024 and 2025, with a slight decrease in global headline inflation to 5.9 percent this year.

Despite these projections, the IMF warns that the battle against inflation is ongoing and premature declarations of victory should be avoided.