World Bank Warns of Global Economic Slowdown in 2024

The World Bank's latest report signals a concerning trend for the global economy, projecting a third consecutive year of slowdown. Despite a resilient rebound in 2021, growth dipped to 3.0 percent in 2022 and further to 2.6 percent in 2023. The outlook for 2024 is grim, with an anticipated growth of just 2.4 percent, significantly below the 2010s average.

Indermit Gill, the World Bank's chief economist, expresses worry about this unexpected downturn, marking it as the weakest global growth performance since the 1990s. Gill emphasizes the need for corrective action to prevent prolonged subpar growth, projecting a gloomy scenario unless intervention occurs.

The report also sheds light on India's economic trajectory, projecting steady growth from 6.3 percent in 2023-24 to 6.5 percent in 2025-26. However, it notes a potential slowdown in India's post-pandemic recovery, citing a marginal deceleration in investment and tapering private consumption growth.

As the global economy faces these challenges, the report serves as a stark reminder for proactive measures and collaboration on a global scale. With the Union government set to present the Interim Budget for FY2024-25 soon, these insights offer timely considerations for economic planning and decision-making.