Global growth to slow in 2024, World Bank says

The news: The World Bank has warned that global growth in 2024 is set to slow for a third year in a row, prolonging poverty and excessive debt levels for many developing countries.

The numbers: Global GDP is likely to grow 2.4% this year, down from 2.6% in 2023 and 3.0% in 2022, the World Bank forecast in its latest Global Economic Prospects report. The global economy expanded 6.2% in 2021 when there was a rebound following the pandemic.

The context: The US economy is forecast to slow to 1.6% this year from 2.5% in 2023 as restrictive monetary policy restrains activity amid diminished savings. The eurozone's growth is forecast at 0.7% amid high energy prices and tighter credit conditions. China is also weighing on the global outlook as its growth slows to a forecast 4.5% in 2024, marking its slowest expansion in over three decades.

What they said: "Without a major course correction, the 2020s will go down as a decade of wasted opportunity," World Bank Group Chief Economist Indermit Gill said in a statement. "Near-term growth will remain weak, leaving many developing countries — especially the poorest — stuck in a trap, with paralyzing levels of debt and tenuous access to food for nearly one out of every three people."