Macroeconomic conditions

The pace of global economic growth remained moderate in 2024. In its January outlook, the International Monetary Fund (IMF) estimates that global economic output grew by 3.2 percent in 2024 compared with 3.3 percent in 2023 (IMF, January 2025). This was because, despite robust economic expansion in the US and growth in China (albeit at a lower rate than expected), the economies of countries in Europe performed poorly. Moreover, economic and geopolitical uncertainties and disputes took their toll on the global economy.

Advanced economies increased their economic output by 1.7 percent in 2024 (2023: 1.7 percent). Although the eurozone’s growth rose from 0.4 percent to 0.8 percent, it remained weak. US growth was almost unchanged at 2.8 percent (2023: 2.9 percent).

Emerging markets and developing countries recorded growth of 4.2 percent, compared with 4.4 percent in the prior year. China’s growth rate was 4.8 percent in the reporting year (2023: 5.2 percent).

According to the IMF, overall global inflation slowed from 6.7 percent in 2023 to 5.7 percent in the year under review. At 2.6 percent, the inflation rate in advanced economies moved closer to their price stability targets than was the case in emerging markets and developing countries, where the inflation rate was 7.8 percent. The central banks were cautious in their loosening of monetary policy because inflation fell more slowly than expected and inflation risks persisted. There was therefore a considerable time lag between the delayed and gradual process of lowering interest rates, resulting in more favorable financing rates, and its impact on production and investment activity.

The volume of global trade, which had increased by only 0.7 percent in 2023, rose by an encouraging 3.4 percent in 2024.

Gross domestic product in 2024 – year-on-year change in real terms