Global Economy on Track for Worst 5 Years of Growth in 3 Decades

Global Economy on Track for , Worst 5 Years of Growth , in 3 Decades.

The World Bank recently warned that the global economy is headed toward its worst half decade of growth in over 30 years.

CNBC reports that global growth has been forecast to slow for the third consecutive year in 2024.

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The World Bank said in its latest 'Global Economic Prospects' report that global growth dropped from 2.4% to 2.6% in 2023.

In 2025, the organization predicts growth will rise marginally to 2.7%, while acceleration is expected to remain well below the average rate of the 2010s.

The World Bank warned that heightened geopolitical tensions present challenges that threaten to leave many economies with slower growth than in the previous decade.

You have a war in Eastern Europe, the Russian invasion of Ukraine.

You have a serious conflict in the Middle East.

, Ayhan Kose, World Bank deputy chief economist and director of the Prospects Group, via CNBC.

Escalation of these conflicts could have significant implications for energy prices that could have impacts on inflation as well as on economic growth, Ayhan Kose, World Bank deputy chief economist and director of the Prospects Group, via CNBC.

The World Bank went on to warn that without a "major course correction," the 2020s will be remembered as "a decade of wasted opportunity.".

Near-term growth will remain weak, leaving many developing countries — especially the poorest — stuck in a trap: with paralyzing levels of debt and tenuous access to food for nearly one out of every three people, Indermit Gill, World Bank Group chief economist and senior vice president, via CNBC.

Near-term growth will remain weak, leaving many developing countries — especially the poorest — stuck in a trap: with paralyzing levels of debt and tenuous access to food for nearly one out of every three people, Indermit Gill, World Bank Group chief economist and senior vice president, via CNBC.

The bank stressed that the world's goal of making the 2020s a "transformative decade" appears to be failing, but governments still have time to act.

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Investment booms have the potential to transform developing economies and help them speed up the energy transition and achieve a wide variety of development objectives, Ayhan Kose, World Bank deputy chief economist and director of the Prospects Group, via CNBC.

Investment booms have the potential to transform developing economies and help them speed up the energy transition and achieve a wide variety of development objectives, Ayhan Kose, World Bank deputy chief economist and director of the Prospects Group, via CNBC