According to a report released by the United Nations (UN) on Tuesday, global economic growth is expected to hit 2.3% in 2023, an increase of 0.4 percentage points from a forecast made in January. However, the prediction for 2024 has been revised downwards by 0.2 percentage points to 2.5%.

The UN Department of Economic and Social Affairs, responsible for issuing the World Economic Situation and Prospects report, pointed out that despite this upward adjustment, the growth rate remains significantly below the pre-pandemic average growth rate of 3.1% seen over the two decades prior.

A Comparison with IMF Forecasts

These UN forecasts are more modest than those offered by the International Monetary Fund (IMF). The IMF had earlier projected that global growth would decline from 3.4% in 2022 to 2.9% in 2023, but recover marginally to 3.1% in 2024.

Diverging Prospects

The UN report noted that while the economic outlook for the United States, European Union, and China has improved, many developing countries face a bleak future. Growth prospects for these nations have deteriorated due to tightening credit conditions and escalating external financing costs.

Growth Forecasts for the Least Developed Countries

The report expressed particular concern for the least developed countries. These nations are projected to grow by 4.1% in 2023 and 5.2% in 2024. These figures are considerably below the 7% growth target established in the 2030 Agenda for Sustainable Development.