The UN revised its global growth forecast from 2.4% to 2.7%.

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The UN revised its global growth forecast from 2.4% to 2.7%.

Istanbul (ANTARA) – The United Nations (UN) has revised its forecast for an increase in global economic growth for 2024 to 2.7% from the initial estimate of 2.4% in January.

The revision of 0.3 percentage points is reflected in the report on the global economic situation and outlook released on Thursday.

The forecast for 2025 was also revised upwards by 0.1 percentage point to 2.8% from 2.7% in January.

“The global economic outlook has improved since January with major economies avoiding major recessions, thereby reducing inflation without increasing unemployment,” the report said.

The UN also warned that higher interest rates for longer periods, debt sustainability challenges, ongoing geopolitical tensions and climate risks continue to pose challenges to global growth.

This challenge is believed to threaten development progress for decades, especially for least developed countries.

“The revisions mainly reflect improved prospects in the United States, where the latest estimates suggest growth of 2.3% in 2024, and in several large emerging economies, notably Brazil, India and the Russian Federation,” according to the report.

Similarly, China’s outlook shows a slight improvement with growth estimated at 4.8% in 2024.

On the other hand, Africa’s outlook has worsened compared to estimates, while its growth will decline by 0.2 percentage points in 2024.

Similarly, Turkey’s growth will slow from 4.5% in 2023 to 3.2% in 2024, according to the United Nations.

“The rapid devaluation of the Turkish lira has added to inflationary pressures, prompting monetary authorities to adopt tightening measures. “Against a backdrop of weakening domestic demand, which also led to a reduction in imports, the current account deficit narrowed in early 2024,” the report added.

Source: Anadolu
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Translator: Kuntum Khaira Riswan
Publisher: Atman Ahdiat
Copyright © ANTARA 2024

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