1. Overall Economic Growth
Global economic growth has remained steady at 3.2% in 2024. This growth rate varies significantly between developed and developing countries, with emerging markets in Asia being major contributors. India and China account for nearly half of this growth. However, China’s growth is expected to slow to 3.3% by 2029 (IMF).
2. Inflation and Price Increases
Global inflation has decreased from 6.7% last year to 5.9% this year. However, energy and food prices are on the rise again. In some developed economies, like the United States, progress in controlling inflation has slowed, leading central banks to maintain higher interest rates for longer periods. This situation could negatively impact emerging economies (IMF) (World Bank).
3. Food Security Crisis
Rising food prices globally are exacerbating food security issues, particularly in low- and middle-income countries. In 167 surveyed countries, food price inflation exceeds general inflation rates. Regions like Gaza, Mali, and South Sudan are experiencing severe food insecurity, with significant portions of their populations facing hunger and malnutrition (World Bank).
4. Trade and Global Cooperation
The global trading system is under increasing strain, with many countries adopting protectionist measures such as unilateral tariffs and industrial policies. These actions are likely to distort trade, hinder growth, and complicate international cooperation on global challenges like climate change. The IMF emphasizes the need for multilateral cooperation to ensure sustainable growth (IMF).
5. Financial and Fiscal Challenges
Post-pandemic, many countries face deteriorating public finances, with rising debt levels and widening budget deficits. In the United States, for instance, the fiscal policy is leading to a steadily increasing debt-to-GDP ratio, posing risks to both national and global economies (IMF).
6. Climate Change and Sustainability
Global economic development intersects with efforts to combat climate change. Investment in green technologies and innovation is crucial for sustainable development. The upcoming 2025 Climate Summit in Belém, Brazil, is a key platform for addressing these issues (Global Issues).