Moody's expects global economic growth to slow

International credit rating agency Moody's reported that the global economic growth rate is expected to slow down to 2.1 percent in 2024 as high interest rates spread to the real economy through credit channels. Moody's also revised its Turkey growth forecast. Moody's published its Global Macro Outlook 2024-25 Report under the title "G20's growth dynamics diverge amid ongoing global slowdown." The report reported that global growth will slow down in 2024 as high interest rates spread to the real economy through credit channels. The report noted that inflation will continue to cool down in 2024 as demand slows down due to central banks maintaining their tight policy stance, and that global growth is expected to strengthen in 2025 unless there are unexpected shocks. The report stated that the growth rate of G20 economies is expected to be 2.8 percent this year, 2.1 percent next year, and 2.6 percent in 2025. The report reported that the advanced economies of the G20 are projected to grow 1.7 percent this year, 1 percent next year and 1.8 percent in 2025, while developing economies are expected to grow 4.3 percent this year, 3.7 percent next year and 3.8 percent in 2025. US growth expected to slow next year The report, which stated that the economic slowdown would be irregular, stated that US economic growth remained strong but would slow in 2024. The report stated that the growth expectation for the US economy was increased from 1.9 percent to 2.4 percent for this year, while maintaining it at 1 percent next year. The US economy is projected to grow 2 percent in 2025. The report, which indicated that the Eurozone suffered a harder blow in 2023 and that its economic growth would remain weak in 2024, noted that the growth forecast for the regional economy was maintained at 0.7 percent for this year, and was revised down from 1.2 percent to 1.1 percent for next year. The Eurozone economy is projected to grow 1.7 percent in 2025. The report stated that the Chinese economy is expected to reach its 5 percent growth target in 2023, but that growth is estimated to slow down to 4 percent in 2024 and 2025. Turkey is estimated to grow 4.2 percent this year Moody's report noted that the Turkish economy is expected to grow 4.2 percent this year, 2.6 percent next year, and 3 percent in 2025. The credit rating agency had previously predicted that the Turkish economy would grow 4.2 percent this year and 3 percent next year. Inflation is expected to return to target in most G20 economies by the end of 2025 On the other hand, the report stated that the recent increase in bond yields will partially reverse, and that the US 10-year bond yield is expected to decline to the long-term balance of around 4 percent in 2024 due to the falling growth rate and inflation bringing interest rate cuts closer. The report noted that policy rates for major central banks have reached their peak with the downward trend in inflation. The report stated that inflation will continue to decline, and that inflation is expected to return to target in most G20 economies by the end of 2025. The report warned that climate or geopolitical events could lead to fluctuations resulting from sudden increases in energy and food prices.