Global economy to slow down but likely avoid recession in 2024

Most economists expect the global economy to avoid a recession but have flagged possibilities of "mild recessions" in Europe and the UK.

China's growth is seen weakening, exacerbated by companies seeking alternative cost-efficient production destinations. (Image credit: Reuters)

Some of the major banks in the world expect global economic growth to ease further in 2024, squeezed by elevated interest rates, higher energy prices and a slowdown in the world's two largest economies.

The global economy is forecast to grow 2.9 per cent this year, a Reuters poll showed, with next year's growth seen slowing to 2.6 per cent.

Most economists expect the global economy to avoid a recession but have flagged possibilities of "mild recessions" in Europe and the UK.

A soft landing for the United States is still on the cards, although uncertainty around the Federal Reserve's monetary tightening path clouds the outlook. China's growth is seen weakening, exacerbated by companies seeking alternative cost-efficient production destinations.

TAGS: