The global economy is projected to grow by 3.1% in 2024, following a similar rate in 2023, with expectations for a slight acceleration to 3.2% in 2025. Advanced economies are anticipated to see GDP growth rise from 1.5% in 2023 to 1.6% in 2024, primarily driven by looser monetary policy and rebounding inflation-adjusted income, particularly in Europe and the UK. Conversely, emerging markets may experience a slight slowdown, from 4.2% in 2023 to 4.1% in both 2024 and 2025, as structural challenges in mainland China weigh on growth, despite robust prospects in India and some improvement in the Latin America and MENA regions.
Global inflation is expected to decline from 6.2% in 2023 to 4.6% in 2024 and 3.5% in 2025, with central banks likely to ease monetary policies gradually as disinflation progresses. Despite the potential for structural inflationary pressures due to factors such as demographics and digitalization, business leaders are encouraged to adopt strategies focused on resilience, innovation, agility, and profitability. By doing so, organizations can navigate the complexities of a new economic landscape characterized by geopolitical tensions and evolving market dynamics.
