Global Economy Faces Slowdown in 2024 Amid High Interest Rates and Inflation

While the US economy shows resilience, China's growth is threatened by a property crisis and declining domestic demand.

Global economic growth is expected to slow in 2024 due to high interest rates and inflation, according to the Organisation for Economic Co-operation and Development (OECD).
The US Federal Reserve's decision to raise its benchmark interest rate to combat inflation has shown that the US economy can withstand high borrowing costs, but there are concerns about increasing unemployment and financing risks.
China's economy is facing challenges with a property crisis, declining domestic demand, and high youth unemployment. The country's growth rate is expected to gradually decline to 3.5% in 2028, according to the International Monetary Fund.
China's real estate sector, which accounts for 23% of the country's GDP, has been affected by Beijing's decision to limit property developers' use of debt financing, leading to falling house prices and developer defaults.
Oil markets have so far managed to shrug off the effects of Middle East tensions, with Brent crude trading at under $79 a barrel, down from $92.4 in mid-October.