High interest rates, a further escalation of conflicts, slow international trade and growing climate disasters pose significant challenges for the world, according to the analysis of the Department of Economic and Social Affairs (DESA), released this Thursday. According to these forecasts, the most disadvantaged economies will once again be the poorest, while sustainable development continues to face new setbacks.

“Persistently high inflation has further delayed progress in poverty eradication, with especially severe impacts on less developed countries,” Li Junhua, Deputy Secretary General of DESA, told reporters.

World economy is expected to grow 2.4 percent in 2024, a decline compared to last year, but in regions such as Latin America the index will barely reach 1.6 percent compared to 2.2 in 2022.

In order to change the outlook, UN analysts agree on the needs to increase equity in access to employment to reduce gender wage gaps and stronger international cooperation to stimulate growth and promote the green transition.

The report recognizes that there is an urgent need to promote strong and effective global cooperation initiatives to avoid debt crises and provide adequate financing to developing countries. It also underlined that low- and middle-income nations with vulnerable fiscal situations need debt relief and restructuring to avoid a prolonged cycle of weak investment, slow growth and high debt service burdens.

Other positive steps would be expanding global climate finance, reducing and eventually eliminating fossil fuel subsidies, meeting international financial commitments for developing countries, and promoting technology transfer.

UN Secretary General António Guterres assured that 2024 must be the year “in which we get out of this deadlock.” “By unblocking big, bold investments we can drive sustainable development and climate action, and put the global economy on a path to stronger growth for all,” Guterres said.

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