World Economic Situation and Prospects as of mid-2024

The global economic outlook has improved since January, with major economies avoiding a severe downturn. The world economy is now projected to grow by 2.7 per cent in 2024, instead of 2.4 per cent forecasted earlier, on the back of better-than-expected performance of the United States economy and some improvement in the outlook for several large emerging economies. The modest gain in the growth momentum is partly offset by the downward revisions of the growth outlook for the European Union, Africa, and Western Asia. On balance, the near-term economic outlook is only cautiously optimistic as economic vulnerabilities remain, amid persistently high interest rates, continuing geopolitical tensions, and increasing climate risks.

“The SIDS outlook for 2024 is promising but we mustn't get complacent. We need to think differently about our support to SIDS, mindful of their unique vulnerabilities.”
- UN Under-Secretary-General for Economic and Social Affairs, Li Junhua

The world economy is also grappling with challenges to accelerate the transition to net zero emissions. Technological breakthroughs – especially in renewables and batteries, requiring extraction, processing and use of critical minerals – has opened up new opportunities for boosting economic growth and achieving the SDGs, especially in mineral-rich developing economies. Taking advantage of such opportunities and avoiding a renewed “resource curse” will require sound national policies and effective implementation capacities. These countries cannot do it alone. An enabling international environment and stronger international cooperation will be essential to harness the potential of critical mineral resources and accelerate progress towards sustainable development