
The UN Department of Economic and Social Affairs predicts that India will maintain its role as a leading major economy, expecting a growth rate of 6.2% in 2024, a slight decrease from the earlier projected 6.3% for 2023. The growth is attributed to strong domestic demand, coupled with expansions in manufacturing and services.
In the third quarter of 2023, while most major global economies experienced a downturn, India remained resilient, as indicated by the manufacturing Purchasing Managers’ Index. Multinational corporations are increasingly considering India as a viable option for redistributing their supply chains compared to more mature economies.
Looking ahead, there is an anticipation of a global inflation decrease to 3.9% in 2024. This is expected to be driven by a projected decline in global commodity prices and reduced demand due to monetary constraints.
The United Nations World Economic Situation and Prospects (WESP) 2024 report, released on Thursday, forecasts a slowdown in global economic growth from an estimated 2.7% in 2023 to 2.4% in 2024, falling below the pre-pandemic growth rate of 3%. Despite surpassing expectations in 2023, the report highlights short-term risks and structural vulnerabilities in the global economic performance.
The UN’s economic report paints a cautious outlook, citing persistently high interest rates, escalating conflicts, sluggish international trade, and increasing climate disasters as significant challenges to global growth.
The prolonged period of tighter credit conditions and higher borrowing costs presents formidable obstacles for a world economy burdened with debt, while also emphasizing the need for increased investments to revive growth, combat climate change, and accelerate progress towards the Sustainable Development Goals (SDGs).