Global Economic Prospects Report 2024 Key Highlights

World Bank's Global Economic Prospects report projects global growth to hold steady at 2.6% in 2024. Check here Key Highlights of Global Economic Prospects Report 2024.

Context

The World Bank’s Global Economic Prospects report projects global growth to hold steady at 2.6% in 2024, with a slight increase to an average of 2.7% in 2025-26.
This growth rate remains below the pre-COVID-19 decade’s average of 3.1%.

Key Highlights of Global Economic Prospects Report

Regional Growth Trends in South Asia

Growth in the South Asia region is expected to decrease from 6.6% in 2023 to 6.2% in 2024, primarily due to a moderation of India’s growth from recent high levels.
Despite this slowdown, regional growth is forecast to maintain a rate of 6.2% in 2025-26.
Other economies in the region, like Bangladesh, Pakistan, and Sri Lanka, are expected to experience robust growth, though slower in Bangladesh compared to previous years.

India’s Growth Trend

India is projected to remain the fastest-growing major economy with an expected steady growth rate of 6.7% over the next three years, including the current financial year.
For fiscal year 2023/24, India’s growth is estimated at 8.2%, which is an increase of 1.9 percentage points from previous estimates made in January.

Investment and Consumption in India

India’s investment growth is anticipated to slow down from its previous high levels but remain robust, bolstered by strong public and private investment.
Private consumption in India is likely to benefit from a recovery in agricultural production and decreasing inflation rates.
Government consumption in India is expected to grow slowly, aligning with efforts to reduce current expenditures relative to GDP

Global and Regional Inflation Trends

Global inflation is projected to moderate to 3.5% in 2024 and further to 2.9% in 2025, although this decline is slower than previously expected.
Central banks globally are likely to remain cautious about reducing policy interest rates, with global interest rates expected to average about 4% over 2025-26.
In India, inflation has been within the Reserve Bank’s target range of 2 to 6% since September 2023.
In other parts of the region, despite being below peak levels, inflation remains high due to persistent food price inflation and increased energy costs.

About the World Bank

Founded in: 1944 at the Bretton Woods Conference.
Headquarters: Washington, D.C., United States.
Membership: 189 member countries.

Functions

Provides financial assistance: Offers loans, grants, and credits to governments for various projects.
Technical assistance: Shares expertise and knowledge to support development projects.
Research and analysis: Conducts research on global economic issues and provides policy advice.
Promotes global partnerships: Collaborates with governments, international organisations, and civil society to achieve development goals.

Features:

Abolish extreme poverty and hunger
Ensure universal primary education
Encourage gender equality
Reducing the mortality of children
Ensure better maternal health
Fight HIV/AIDS, malaria, and other diseases
Promote environmental sustainability
Establish a Global Partnership for Development

Structure

International Bank for Reconstruction and Development (IBRD): Provides loans and financial products to middle-income and creditworthy low-income countries.
International Development Association (IDA): Provides grants and low- to zero-interest loans to the poorest countries.
International Finance Corporation (IFC): Focuses on private sector development.
Multilateral Investment Guarantee Agency (MIGA): Provides political risk insurance to investors.
International Centre for Settlement of Investment Disputes (ICSID): Provides arbitration and conciliation services for investment disputes.