Global Economic Growth Proceeds Amid Increasing Uncertainty - CBA
Date
12/3/2024 3:10:24 PM
(MENAFN- Trend News Agency)
BAKU, Azerbaijan, December 3. The global
economic growth continued during the nine months of 2024 against
the background of growing uncertainty, Trend reports via the Central bank of
Azerbaijan's Monetary Policy Review.
Meanwhile, it was noted that geopolitical tensions, especially
trade protectionism and geo-economic disagreements, continued to
pose challenges to global economic activity and integration. It was
noted that despite the global risks, the process of reducing
inflation continued and most countries have started easing monetary
policy.
“Over the past period of 2024, the global economy has
demonstrated stability. Activity in the world economy, including
the behavior of producers and consumers, was largely stable during
the reporting period.
The factors forming the dynamics of the Business Confidence
Index and Consumer Confidence Index include economic uncertainty,
risks associated with price growth, geopolitical risks, and
problems in the supply chain. Reasons for the trend of the
Composite Leading Indicator (composed of 4 indicators) include
economic recovery, growth in production and investment, and
positive dynamics in trade. These factors reflect signals that
favor the future development and activity of the economy. Although
the Purchasing Managers' Index for the manufacturing sector started
to rise at the beginning of this year, it has shown a downward
trend since the middle of the year. In September, this index fell
to 48.8 from 50.0 at the beginning of the year, the lowest reading
since November 2023. The main reasons for the decline were weak
output growth, a decline in new orders, rising political
uncertainty, and unemployment. The index was below the average
level (51.5) seen in 2015-2019. Decrease in industrial activity was
observed in the US, China, Japan, and EU countries”, the
information notes.
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