Sign In
Learn bits
World Affairs, Index & Reports
Mahesh

13/01/24 07:24 AM IST

UN projects food inflation to go up in 2024 due to El Nino, rising geopolitical tensions

In News
  • Global inflation is estimated to have dropped to 5.7 per cent in 2023 and a continued decrease in inflation to 3.9 per cent has been projected for 2024.
Major findings
  • The report titled World Economic Situation and Prospects report for 2024 forecasts a decline in global inflation in 2024.
  • The report forecasts a deceleration in global gross domestic product (GDP) growth, from an estimated 2.7% in 2023 to 2.4% in 2024.
  • Developing economies, in particular, are struggling to recover from pandemic-induced losses, with many facing high debt and investment shortfalls.
  • It is anticipated that many low-income and vulnerable nations will experience only moderate growth in the upcoming years.
  • South Asia grew by an estimated 5.3% in 2023 and is projected to increase by 5.2% in 2024, driven by a robust expansion in India, which remains the fastest-growing large economy in the world.
  • India is projected to grow by 6.2% in 2024, supported by domestic demand and growth in manufacturing and services.
Inflation
  • Global headline inflation fell from 8.1% in 2022 to an estimated 5.7% in 2023 and is projected to decline to 3.9% in 2024.
  • Headline inflation measures the total inflation within an economy, which includes commodities like food and energy prices.
  • The decline in inflation was attributed to ongoing moderation in international commodity prices and a decrease in demand due to monetary tightening by the UN.
  • However, food price inflation remains critical, exacerbating food insecurity and poverty, particularly in developing countries.
  • An estimated 238 million people experienced acute food insecurity in 2023, an increase of 21.6 million from 2022.
Climate change
  • 2023 experienced extreme weather conditions, leading to devastating wildfires, floods, and droughts worldwide.
  • These events have direct economic impacts, such as damage to infrastructure, agriculture, and livelihoods.
  • Estimates suggest a potential 10% reduction in global GDP by 2100, considering events like the Greenland ice shelf collapse
  • Without mitigation, models indicate a potential 23% decrease in average global incomes by 2100.
Trade
  • Global trade growth weakened to 0.6% in 2023, anticipated to recover to 2.4% in 2024.
  • The report points to a shift in consumer spending from goods to services, rising geopolitical tensions, supply chain disruptions, and the lingering effects of the pandemic as factors impeding global trade.
  • Rising external debt and increased interest rates hinder developing countries' access to international capital markets
  • Decline in official development assistance and foreign direct investment compounds financial constraints for low-income nations.
Source- DTE

More Related Current Affairs View All

22 Jan

Maha Kumbh: A confluence of faith and culture

'Kumbh, derived from a Sanskrit word which means a pitcher, is rotationally held every three years at the four riverside cities of Prayagraj, Haridwar, Ujjain and Nasik' The A

Read More

22 Jan

TRAI combating spams

'The Telecom Regulatory Authority of India (TRAI) will be using distributed ledger technology (DLT) to register spam preferences from customers.' In order to fight the deluge of

Read More

22 Jan

Status of the Smart Cities Mission

'Almost a decade has passed since the Indian government announced the concept of “smart cities” as the new lighthouses of urbanisation.' The June 2015 announcement o

Read More

India’s First Ai-Driven Magazine Generator

Generate Your Custom Current Affairs Magazine using our AI in just 3 steps