Underlying Economic Conditions

The global economy will face mounting challenges in 2024. The Organisation for Economic Co-operation and Development (OECD) expects existing and fresh geopolitical conflicts to have a negative impact not only on the energy markets, but also on the use of key trade routes. In addition, stubbornly high inflation, higher interest rates and weak household incomes are likely to deal a blow to growth in 2024. The OECD estimates global gross domestic product growth of 2.9 percent for 2024, with a slight improvement in 2025 to 3.0 percent. The International Monetary Fund (IMF) predicts that growth will stagnate in 2024 amid global crises. According to the IMF forecast, global GDP will increase by 3.1 percent, matching the growth level seen in 2023.