Produced by leading economists from KPMG member firms around the world, this year’s Global Economic Outlook report looks at the economic prospects for 37 countries and economic areas in 2024 and 2025, including the potential for the world economy over the next two years.
The Global Economic Outlook 2023 reveals a significant uplift in global growth is unlikely in 2024 with no short-term end in sight to geopolitical uncertainty and tight monetary policies.
With global trade plateauing in recent years, driven in part by the pandemic, geopolitical tensions and rising protectionist measures, the KPMG report warns of potentially large output losses from geoeconomic fragmentation over the longer term. The report forecasts global GDP growth of 2.2% in 2024 – down from 2.6% in 2023, with a return to 2.6% growth anticipated in 2025.
While the latest outlook is unquestionably skewed toward a negative forecast, there are always glimmers of hope and optimism. Since the outbreak of the pandemic, we’ve had several years of uncertainty and business leaders have demonstrated a real sense of resilience and agility. With the right strategies in place and an ability to flex to an ever-changing world, the most innovative and focused should eventually start to see some light at the end of the long tunnel.