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Global growth will be modest in 2024 with a slight improvement further in 2025, according to the most recent report from the Organisation for Economic Co-operation and Development (OECD) an international organisation. Worldwide in 2024, we should see 2.9 per cent growth, with India, Indonesia, Saudi Arabia and China being the top four growth drivers, and then it will be three per cent in 2025.

For this year, GDP growth in the US is projected at 2.4 per cent in 2023, before slowing to 1.5 per cent in 2024, and then picking up slightly to 1.7 per cent in 2025 as monetary policy is expected to ease. In the euro area, which had been relatively hard hit by Russia’s war of aggression against Ukraine and the energy price shock, GDP growth is projected at 0.6 per cent in 2023, before rising to 0.9 per cent in 2024 and 1.5 per cent in 2025. China is expected to grow at a 5.2 per cent rate this year, before growth drops to 4.7 per cent in 2024 and 4.2 per cent in 2025 on the back of ongoing stresses in the real estate sector and continued high household saving rates.

“The global economy continues to confront the challenges of both low growth and elevated inflation, with a mild slowdown next year, mainly as a result of the necessary monetary policy tightening over the past two years. Inflation has declined from last year’s peaks. We expect that inflation will be back at central bank targets by 2025 in most economies,” OECD Secretary-General Mathias Cormann said. “To secure stronger growth, we need to boost competition, investment and skills and improve multilateral co-operation to tackle common challenges, like reinvigorating global trade flows and delivering transformative action on climate change.”

With this in mind, the year 2024 also promises to be quite an election year, with many countries off to the ballot box. I hope the voters choose politicians who will do the longer-term thinking that is required now, both for their countries and for the planet.

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