Global economy to see slowest non-crisis growth year since dot-com bubble burst in 2024

According to Bloomberg Economics, the global economy, which grew by 3.1 percent in 2023, is set to grow by 2.7 percent in 2024. Excluding the 2009 global financial crisis and the 2020 COVID pandemic, this marks the slowest growth rate since the dot-com bubble burst in 2001.

However, according to Bloomberg Economics Chief Economist Tom Orlik, a year of slow global growth is a small price to pay to bring inflation under control.

Predicting that central bank monetary policies will also begin to ease in response to slowing growth, BE expects the Fed to cut interest rates by 125 basis points in 2024.

While Bloomberg Economics expects a recession in the UK and stagnation in the Eurozone, it forecasts that growth for advanced economies as a group will slow from 1.5 percent in 2023 to 0.9 percent in 2024.

On the other hand, emerging markets will also face a slowdown. While problems in the real estate sector in China continue to suppress growth, India is expected to continue performing relatively better.

Bloomberg Economics expects growth in emerging markets to decline from 4.4 percent to 4.1 percent. Economists are of the opinion that global inflation will decline from the 6.2 percent level at the end of 2023 to 5.4 percent by the end of 2024.