Inflation, other factors could trigger global economic slowdown in 2024

The Organization for Economic Cooperation and Development (OECD) is expecting international growth to slow down to 2.7% in 2024, the slowest annual growth since 2020’s pandemic.

The combination of rising interest rates, high inflation, and wars is predicted to cause the world economy to contract in 2019. The OECD forecasts that recessions will be avoided in spite of this.

Persistently high inflation and possible effects from Russia’s war in Ukraine and the Israel-Hamas conflict are among the risks. Inflation and increases in interest rates by the Federal Reserve are to blame for the slowdown in the economies of the US and China.

In 2024, the US economy is predicted to grow by just 1.5%, while China’s economy is predicted to grow by 4.7% as a result of a slowing export market, rising unemployment, and a real estate crisis.

The 20 euro-spreading EU countries are facing increased interest rates and increased energy prices due to Russia’s invasion of Ukraine. The OECD predicts a 0.9% growth in the eurozone next year, a slight improvement from the predicted 0.6% growth in 2023.