UN raises global economic growth forecast

The United Nations (UN) stated that the short-term global economic outlook is cautiously optimistic, and raised its global economic growth forecast for this year to 2.7 percent. The report noted that economic growth in Turkey is expected to be 3.2 percent this year. The UN shared the mid-year update of the World Economic Situation and Prospects 2024 report, which it published in January. The report indicated that global economic expectations have improved since January, emphasizing that major economies avoided a serious recession and reduced inflation without increasing unemployment. However, the statement indicated that the outlook was only cautiously optimistic, and said, "Prolonged high interest rates, debt sustainability challenges, ongoing geopolitical tensions, and worsening climate risks continue to pose challenges to growth, threatening decades of development gains, especially for least developed countries and small island developing States." Global growth forecast for 2024 increased by 0.3 points The report stated that the global economy is expected to grow by 2.7 percent this year, which is 0.3 points higher than anticipated in January. The report reported that the projected growth in the world economy for next year was increased by 0.1 points to 2.8 percent, and noted that the upward revisions reflected the better outlook for the United States, as well as Brazil, India, and Russia. The report stated that the growth expectation for the United States was increased by 0.9 points to 2.3 percent for 2024, while the outlook for China increased slightly, with growth in the country expected to be 4.8 percent this year. The report pointed out that the economic outlook for Africa had worsened since its last publication, and that the expected growth for 2024 decreased by 0.2 points to 3.3 percent. The report noted that economic growth in Turkey is expected to be 3.2 percent this year. It was stated that Turkey’s current account deficit narrowed at the beginning of this year due to softening domestic demand and decreasing imports. The UN report noted that global growth in the coming years is expected to remain below the 3.2 percent average growth in the 2010-2019 period. Persistent challenges highlighted in developing economies The report noted that the softening in international commodity prices and the tight monetary stance adopted by most central banks have put the global economy on the path to combat inflation, while indicating that some developing economies continue to stubbornly struggle with high inflation. The report also noted that most developing economies face challenges such as high borrowing costs, persistent exchange rate pressures and persistent political instability. The report emphasized that the stagnant employment situation in developing economies contrasts with the situation in developed economies, particularly in North America, Europe and Japan, where unemployment rates are near record lows, and that the short-term outlook of some economies is clouded by the potential intensification of geopolitical tensions and multiple conflicts around the world.