World Bank projects global growth to stabilize at 2.6% in 2024

The World Bank projects global growth to stabilize at 2.6% in 2024, the first steady rate in three years, despite challenges like geopolitical tensions and high interest rates, the Arab News Agency reported.

To achieve robust growth, the World Bank’s report emphasizes the importance of protecting trade, supporting green and digital transitions, providing debt relief, and improving food security.

While global inflation is expected to slow to 3.5%, central banks are likely to maintain cautious policies. The report forecasts that average benchmark policy interest rates will remain about twice the 2000-2019 average in the coming years.

The report stresses the need for decisive policy efforts to address high debt, boost investment, and ensure fiscal sustainability. Structural policies are needed to enhance productivity, public investment efficiency, human capital, and close labor market gender gaps.

Regionally, growth in East Asia, the Pacific, Europe, Central Asia, Latin America, the Caribbean, and South Asia is expected to decelerate. However, growth in the Middle East and North Africa (MENA) region is projected to increase, particularly in 2025 with a boost from oil production.

The report warns of risks including regional conflicts, tightening global financial conditions, high government debt, and climate-related events, stressing that weaker growth in China could reduce oil demand, while stronger US growth could benefit regional exports.

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