Global economic growth is set to experience its slowest rate in three decades by 2030, according to a new report released by the World Economic Forum (WEF). The report, titled ‘Future of Growth Report 2024,’ highlights the detrimental impact of ongoing economic and geopolitical shocks on global development, exacerbating challenges such as the climate crisis and a weakening social contract.
The WEF emphasizes the need for a new approach to economic growth that considers long-term sustainability and equity, urging a balance between efficiency and quality. By examining innovation, inclusion, and sustainability together, the report aims to redefine how economic growth is assessed.
Saadia Zahidi, Managing Director of the WEF, stressed that reigniting global growth is crucial in addressing key challenges but noted that growth alone is insufficient. The report proposes an assessment framework that encompasses not only efficiency but also long-term sustainability, resilience, equity, and innovation, aligning with global and national priorities.
To support this new narrative for economic growth, the WEF launched its ‘Future of Growth’ initiative, a two-year endeavor aimed at assisting policymakers worldwide in identifying the best pathways to achieve balanced growth, innovation, inclusion, sustainability, and resilience goals. The initiative brings together economists, experts, and policymakers to collaborate on these critical issues.
The report also sheds light on the current growth patterns worldwide, highlighting that many countries are still growing in ways that are neither sustainable nor inclusive. These countries lack the capacity to absorb or generate innovation effectively, leaving them vulnerable to and partly responsible for global shocks.
As the global economic slowdown looms, it becomes evident that a reevaluation of growth strategies is imperative. The WEF’s report and initiative aim to guide policymakers towards a more holistic and forward-thinking approach to economic growth, one that considers not only short-term benefits but also long-term sustainability and societal well-being.
In a world grappling with a multitude of challenges, from climate change to social inequality, it is essential to forge a new path that promotes resilience, inclusivity, and innovation. The WEF’s efforts provide a blueprint for governments and leaders worldwide to navigate the approaching era of economic uncertainty while working towards a more sustainable and prosperous future.
