- A recent report by the International Monetary Fund (IMF) outlines the countries that will drive global economic growth in 2024.
- Even though economic growth for global superpowers like the US and China is slowing down, they are still expected to make the largest contributions by 2024.
- Among the 20 countries that will drive the global economy in the next five years are Egypt, Mexico, Pakistan, Saudi Arabia, South Korea, the Philippines, France, Thailand, Malaysia, and Bangladesh.
- Economic growth is expected to fall to a rate of 3% this year, which is the worst figure since the global financial crisis in 2007.
Global economic growth will increasingly slow down in the coming years, according to IMF projections analyzed by Bloomberg.
On the other hand, the contribution of individual countries is expected to change significantly by 2024. Countries such as India and Indonesia, for example, are expected to play a much more important role in global economic growth in the years to come.
According to the International Monetary Fund (IMF), economic growth is expected to fall to a rate of 3% this year – the worst figure since the global financial crisis in 2007. The IMF blamed escalating global tensions as well as the ongoing trade war between America and China that is affecting international trade.
China has, for a long time now, been ahead in terms of economic growth. However, it now looks like the country’s growth rate is expected to slow down by 4.4%, according to the IMF report. But despite this, the superpower is still expected to make the largest contribution to global growth – at about 28% – by 2024.
The United States, another major economic power, is projected to lose its current second-place ranking to India by 2024, coming in third with 9.2 %. India will contribute to global growth with an estimated 15.5 %.
All other countries are expected to make much smaller contributions. Indonesia will rank in fourth place, with 3.7%, followed by Russia with 2% and Brazil with 1.8%.
Although, not on the top eight, the United Kingdom has occupied the ninth ranking, but is expected to drop to 13 by 2024 due to the Brexit crisis.
Among the 20 countries that will drive the global economy in five years that are not included in the list are Mexico, Pakistan, Saudi Arabia, South Korea, the Philippines, France, Thailand, Malaysia, and Bangladesh.
According to Bloomberg, Spain, Poland, Canada, and Vietnam are expected to reduce their output and no longer be among the countries with the strongest economic growth in the world.
The Middle Eastern country is expected to contribute 1.5% to world growth, coming in 8th place. It is one of the smaller countries that will be driving global growth in the next five years.
These three countries will each have a share of 1.6%. Germany’s GDP, in particular, is only expected to rise by 0.5% this year and 1.2% next year, making it the country with the second-lowest economic growth in 2019.
Brazil overtook Germany and Japan to be ranked in 6th place. Its economy is the ninth-largest in the world, and mainly relies on primary products for export.
According to the IMF projections, Russia will displace Japan and rank in 5th place by 2024, with 2% of GDP growth.
Indonesia will remain in the fourth spot even though its economy is expected to drop from 3.9% growth share in 2019 to 3.7% growth share in 2024.
Despite the Trump administration’s trade war with China, the US economy is growing faster than expected, according to the Guardian. But, business investment has fallen again, with companies cutting back on new equipment.
India will leapfrog Germany and the United States to claim the number three spot in global rankings in 2024. Its economic growth is expected to be at 5.5% in 2019-2020, according to Bloomberg.
China’s economy has been growing at a slower pace thanks to the US-led trade war as well as softer domestic demand. Despite this, the superpower will still lead the way when it comes to global growth in 2024.