Global economy may avoid recession in 2024

NEW YORK (Reuters): A number of big banks expect global growth to slow in 2024, squeezed by elevated interest rates, higher energy prices and uncertainties in the world’s two largest economies, although they see slim chances of a recession.

The global economy is forecast to grow 2.9% this year, a Reuters poll of economists showed, and is expected to slow to 2.6% in 2024.

While the global economy may avoid a recession, Europe and the United Kingdom could see a mild slowdown, according to the poll.

A soft landing for the United States is still on the cards, although uncertainty around the Federal Reserve’s monetary policy path clouds the outlook.

Meanwhile, China’s growth is expected to weaken amid property sector woes and faltering global demand.