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International Economic Growth Is Expected To Fall In 2024, Says Banks

Many leading banks anticipate based on certain studies and surveys that global economic growth is expected to diminish in 2024 and the reasons might be high interest rates, elevated energy prices, and the retardation of two top global economies. Banks warn that the geopolitical financial risk and wars in the Middle East and Ukraine seem to be adding more to worsen the international financial outlook. Economists agree that the world will try its best to avoid getting into a recession, however, there will be a chance of a mild recession in the UK and Europe.

Soft landing for the US won’t make any changes and uncertainty on the Federal Reserve’s strategies on interest rates is going to make things hard to forecast. Besides this, China is going to face weakened growth this year because companies might look for more cost-efficient places for manufacturing. An analyst James Lord says that the slow growth of the US economy could outperform expectations in the first months of 2024. He says that this environment will contract deeply with necessary conditions in Europe and an uncompelling growth in China.

Research by Goldman Sachs provides some optimistic hops as it points to the better-than-expected performance of the international economy in 2023. It also points to the fact that GDP growth and employment held steady in top economies that face high inflationary pressures.