Following four years of turbulence triggered by a devastating pandemic, deepening geo-economic fragmentation, surging inflation, and widespread monetary policy tightening, the global economy in 2024 seems to be trending toward a ‘soft landing’. According to the International Monetary Fund’s (IMF) latest projections, growth for 2024 will hold steady around 3.2 percent owing to markets rebounding as central banks exit constrained monetary policy; easing financial conditions; equity valuations rising; capital flows to most emerging market economies (excluding China) being buoyant, and some low-income countries and frontier economies regaining market access.

With economic buoyancy expected to continue in 2024, growth in Advanced Economies is forecasted to be muted at 1.7 percent in 2024, the same growth rate estimated for 2023. Returning to pre-pandemic levels, this level of growth is expected to be sustained mainly by growth in the United States (US) coupled with stronger consumption due to rising real wages and higher investment from easing financial conditions in the Euro Area. In the Latin America and the Caribbean region, economic growth is projected to decrease to 1.9 percent in 2024 from an estimated 2.3 percent in 2023 driven by weakening global economic activity, elevated debt levels and erratic weather occurrences. A subdued external environment together with rising protectionism and policy uncertainty is expected to contribute to decelerating growth in Emerging and Developing Asia from an estimated 5.7 percent in 2023 to 5.4 percent in 2024.