UNCTAD predicts India’s GDP growth to reach 6.5% in 2024

The latest UNCTAD report forecasts global economic growth at 2.6% in 2024, just above the recessionary threshold. India’s economy stands out with a projected expansion of 6.5% due to strong public investment and service sector growth, amidst a gloomy global scenario.

The report highlights weak economic activity in Europe, particularly in countries like Germany and Italy facing industrial slowdowns and fiscal constraints. The Americas are expected to experience a slowdown, with Argentina battling severe inflation and Brazil’s growth dampened by external pressures.

In Africa, growth is projected at 3.0%, slightly up from 2.9% in 2023. However, armed conflicts and climate impacts pose challenges. The continent’s largest economies, Nigeria, Egypt, and South Africa, are underperforming, affecting overall prospects. Oceania, especially Australia, is expected to see subdued growth extending into 2024.

Global merchandise trade fell by about 1% in 2023, diverging from overall economic growth due to trade tensions and subdued global demand. Disruptions in key shipping routes, such as the Panama Canal drought and Red Sea vessel attacks, have strained merchandise trade and increased shipping costs significantly, according to the report.