India projected to grow at 6.5%
BBN- OVERSEAS
GENEVA: The United Nations Conference on trade and Development (UNCTAD) predicts that global economic growth will decelerate to 2.6 per cent in 2024, only slightly surpassing the 2.5 per crnt benchmark often linked with a recession.
This signifies the third consecutive year of growth trailing below the pre-pandemic norm, which averaged 3.2 per cent from 2015 to 2019. However, India’s economy is bolstered by substantial public investment and expansion in the service sector, with a projected growth of 6.5 per cent in 2024.
The report emphasizes that the current fixation on inflation obscures pressing concerns such as trade disruptions, climate change, and escalating inequalities.
It advocates for structural reforms and coordinated global endeavors, proposing a comprehensive approach involving both supply-side strategies to stimulate investment and demand-side measures to enhance employment and income.
The report underscores an unequal post-pandemic recovery across various regions. In Africa, growth is forecasted at 3 per cent in 2024, a slight improvement from 2.9 per cent in 2023, but challenges persist due to armed conflicts and climate-related impacts in several nations.
The continent’s largest economies, including Nigeria, Egypt, and South Africa, are faltering, dampening overall prospects. South America faces a deceleration in economic growth, with Brazil expected to grow at 2.1 per cent, hindered by external pressures and reliance on commodities, while Argentina anticipates a 3.7 per cent contraction due to inflation and complex debt negotiations.
In North America, growth remains relatively robust despite ongoing challenges, with the United States expected to grow at 2 per cent, albeit with concerns regarding high household debt levels. In Asia, China aims for approximately 5% growth in 2024, leveraging strong manufacturing and trade sectors..Japan faces export demand hurdles and is anticipated to grow at 1 per cent.
In Europe, major economies are grappling with economic slowdowns, with France, Germany, and Italy projecting growth rates of 1.3 per cent, 0.9 per cent, and 0.8 per cent, respectively, due to industrial and fiscal challenges. Economic growth in Oceania, particularly in Australia, is expected to remain subdued, with a projected growth rate of 1.4 per cent in 2024, extending the period of low growth into the year.
