Global economy to face slow growth in 2024, says ACCA
A new report suggests that geopolitical risks may rise from a year packed with elections worldwide
The global economy in 2024 is set to grow slowly and geopolitical risks remain high, a new report by ACCA has stated.
The report, 2024 Global Economic Outlook: Slow Growth High Uncertainty, sets out the key events to watch in a year packed with elections, examines three trends to watch closely, and interviews chief financial officers (CFOs) from across the globe.
Jonathan Ashworth, chief economist at ACCA and author of the report, said: “The busy political calendar, with elections scheduled in around 60 countries, including the US, the UK, India, and the European Parliament, adds a sizable extra degree of uncertainty and potential volatility.”
“It could be risky for central banks to declare imminent victory in their battles against inflation. [..] Upside risks to the global economy in 2024 could perhaps come from continued rapid improvements on the inflation front, which could pave the way for quite an early and significant easing of monetary policy by central banks.”
In addition to monitoring the usual ebb and flow of economic data, Ashworth suggested watching three key trends this year – further backsliding by governments on policies to achieve the green transition, signs of rising geo-economic fragmentation, and developments with artificial intelligence (AI).
Ashworth said: “The first two could be particularly impacted by political developments through the year, and we will be watching for early signs that wider AI adoption is beginning to provide a much-needed boost to productivity growth in economies.”
