Emmanuel OchayiThe United Nations’ World Economic Situation and Prospects (WESP) 2024 report sounded the alarm on a distressing economic future, citing persistent low growth as a looming threat to sustainable development.
The report, released on Friday, painted a grim picture of weakening global trade, soaring borrowing costs, escalating public debt, subdued investment, and mounting geopolitical tensions, all risking global economic stability.
“This forecast raises serious concerns about the world’s economic trajectory,” stated the UN report, projecting a slowdown in global economic growth from an estimated 2.7% in 2023 to 2.4% in 2024—well below the pre-pandemic growth rate of 3.0%.
UN Secretary-General, António Guterres, emphasized the urgent need for investments to revive growth and combat climate change, stating, “2024 must mark a turning point. Significant investments are pivotal to steer the global economy towards sustainable growth.”
READ ALSO: Group Warns About Impending Social Unrest Over Alleged Fuel, Electricity Price Hikes
The report highlighted challenges faced by developed and developing economies alike. It pointed out that several major economies, including the United States, are anticipated to witness decelerating growth due to high-interest rates and sluggish consumer spending.
Moreover, developing countries, especially in regions like East Asia, Western Asia, and Latin America, are grappling with tightened financial conditions and limited fiscal space, hindering their growth prospects.
Inflation, another pressing concern, is projected to decrease globally, yet remains elevated in various countries, surpassing 10% in about a quarter of developing nations. The report noted that this inflation surge has impacted poverty eradication efforts, particularly in the least developed countries.
The report stressed the urgency of global cooperation to address these challenges effectively.
It advocated for measures such as avoiding counterproductive fiscal policies, increasing fiscal support for growth, and emphasized the critical role of central banks, especially in developing countries, in navigating the delicate balance between inflation, growth, and financial stability.
Additionally, the report underscored the necessity of substantial climate financing, debt relief, and restructuring for vulnerable countries to ensure sustained and inclusive growth.
Amid this economic turbulence, the report urged robust international cooperation to prevent debt crises and facilitate financing for developing nations. It also emphasized scaling up climate finance and prioritizing technology transfer to bolster global climate action.
The UN report’s findings highlight the urgency for coordinated efforts on a global scale to mitigate the imminent threats to economic stability, prioritize sustainable development, and accelerate a transition toward a greener future.
Follow Us