In this article, we will find the world’s fastest shrinking economy in 2024. We have prepared a free full list based on the average annual GDP growth rates of the last 5 years. World’s 15 Fastest Declining Economies in 2024.
The global economy is facing significant economic challenges as growth is forecast to slow 2.6% This is just above the recession threshold of 2.5% in 2024. Compared to the pre-pandemic average of 3.2%, this marks the third consecutive year of low growth. Speaking of recession, Japan has slipped up recently List of Recession 2024 Countries.
The country has unexpectedly entered recession after its GDP contracted for two consecutive quarters. In Q4 2023, the economy shrank by 0.4% year-on-year, following a 3.3% decline in the previous quarter. As a result, Japan lost its position Germany has the third largest economy in the world, Japan’s GDP is about $4.2 trillion and Germany’s GDP is $4.4 trillion. Economists were expecting 1% growth for Japan in the 4th quarter. Yen is 9% Although depreciation against the dollar in 2023 boosted Japanese export-competitiveness, it contributed to this shift.
Apart from Japan, the United Kingdom is also in the limelight in its fight against recession. In terms of inflation, the UK currently has the lowest rate compared to both the Eurozone and the US, according to chancellor Jeremy Hunt. However, despite this improvement, prices are still significantly higher than a year ago, with inflation measured at 2.3% in the UK, 3.4% in the US and 2.4% in the Eurozone.
In terms of growth forecasts, the IMF predicts that the UK economy will outpace many European countries such as France, Germany, Italy and Japan in the next six years. The IMF predicts that the UK’s gross domestic product (GDP) will grow by 8.8% by the end of 2029, compared with 8.3% for France, 5.7% for Germany, 3.5% for Italy and 4.4% for Japan.
However, despite the global economic challenges, there are positives in the global economic outlook. For example, private consumption is expected to increase by approximately 4%, which is higher than total income growth of 2.6%. This increase in consumption, although primarily driven by borrowing, will stimulate economic activity. Additionally, some regions are showing promising growth rates; For example, India is projected to grow by 6.5% in 2024, supported by strong public investment and a thriving services sector. According to annual real GDP growth rates (up to April 2024), India is one Top 10 Fastest Growing Economies in the World. Similarly, China is targeting growth of around 5%, capitalizing on its strong manufacturing and trade sectors.
up to Economic trends in 2024 Worryingly, inflation is across the board OECD Countries are expected to decrease from 6.9% to 5.0% in 2023 and 3.4% in 2025. The decrease will be driven by tighter monetary policies and easing pressures on commodity and energy prices. By the end of 2025, most major economies are expected to meet central bank inflation targets. The US is forecast to experience 2.6% GDP growth in 2024, which will slow to 1.8% in 2025 due to higher borrowing costs and moderate domestic demand. Nevertheless, one is known to exist in America World’s Best Economies in 2024. The euro area, on the other hand, will see a gradual rebound, with GDP growth forecast at 0.7% in 2024 and 1.5% in 2025, driven by improved real household incomes, tight labor markets and low policy interest rates.
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Which will be the fastest declining economy in the world by 2024?
Our methodology
To identify the fastest-growing economies in the world in 2024, we averaged the annual GDP growth rates of 50 countries over the past 5 years, from 2019 to 2023. 15 countries with the lowest GDP growth rates were eventually selected. Data on GDP growth rate for each year was obtained from the International Monetary Fund database.
1. Lebanon
Average GDP Growth: -9.96%
Our methodology revealed that Lebanon itself World’s Fastest Shrinking Economy in 2024 The average GDP growth rate in the last five years was 9.96%. Many more rapidly declining economies are discussed in detail below in our full free list World’s 15 Fastest Declining Economies in 2024.
Notably, Lebanon’s economy has suffered a dramatic decline, with its currency losing approximately 95% of its value since the crisis began in 2019. This demonetisation drove most of the depositors out of their savings and pushed more than 80% of the people down. poverty line. The crisis is rooted in decades of overspending and corruption by the ruling elite, and over-lending by the banking sector to the government, which has caused financial system losses of more than $70 billion.
The situation is further aggravated by external pressures such as ongoing conflicts with Israel and the war in Gaza. The IMF has pointed out that while recent fiscal and monetary reforms have reduced inflation, they have not been enough to spark a recovery. With bank deposits frozen, the banking sector freeze continues in 2024. The fastest declining economy in the world today.
To check the free full catalog, please visit World’s 15 Fastest Declining Economies in 2024.
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