Page 6 - Policy Economic Report - June 2024

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Economy in Focus

1. A snapshot of the global economy
Global economic growth

• According to World Bank’s latest Global Economic Prospects report, the global economy is
expected to stabilize for the first time in three years in 2024.

• The global growth is projected to hold steady at 2.6% in 2024 before edging up to an average of
2.7% in 2025-26. The growth is still below the 3.1% average in the decade before COVID-19.

• The forecast implies that over the course of 2024-26, countries that collectively account for more
than 80% of the world’s population and global GDP would still be growing more slowly than they
did in the decade before COVID-19.

• In advanced economies, growth is set to remain steady at 1.5% in 2024 before rising to 1.7% in
2025. Growth in the United States strengthened to 2.5 % last year, owing primarily to robust
consumption, government spending, and significantly reduced imports of goods and services.

• While the developing economies are projected to grow 4% on average over 2024-25, slightly
slower than in 2023, growth in low-income economies is expected to accelerate to 5% in 2024
from 3.8% in 2023.

• Growth in China is expected to slow this year and ease further in 2025 and 2026, with cyclical
headwinds weighing on growth in the near term, along with a continuing structural slowdown.

Figure 1: Contributions to Global Growth Other AEs Other EMDEs Percent

Percentage points 4

4 World (RHS)

United States Euro area China

33

22

11

0 0
2010-19 average
2024f 2025f 2026f
Source: World Bank

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