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World Economy – Challenges At The End Of 2024

Author

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  • Andrei Rădulescu

    (Institute for World Economy)

Abstract

The world macroeconomic climate slightly improved at the end of 2024, an evolution supported by the positive developments on the international financial markets and the prospects for de-regulation and interest rate cuts in the short-run, with favorable impact for the investments. However, more than 4 years since the outbreak of the coronavirus pandemic and almost 3 years since the outbreak of the crisis in Ukraine the world economy continues to be confronted with multiple risks and challenges, including the high level of the uncertainty and the divergence among the main economic blocks in terms of macroeconomic performance. In this paper standard econometric tools are applied and the database of International Monetary Fund (IMF) is used in order the estimate the annual pace for the structural components of the volume of global trade and of the GDP in the world and main economic blocks (USA and China) for the period 1980 – 2024. The results of the econometric analysis show a weak annual pace of potential output for the world economy (influenced by the challenges in terms of global trade) with divergences among the main economies – upward trend in USA and downward trend in China.

Suggested Citation

  • Andrei Rădulescu, 2024. "World Economy – Challenges At The End Of 2024," Romanian Economic Business Review, Romanian-American University, vol. 19(4), pages 133-142, December.
    • Handle: RePEc:rau:journl:v:19:y:2024:i:4:p:133-142
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    File URL: http://www.rebe.rau.ro/RePEc/rau/journl/WI24/REBE-WI24-A13.pdf
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    References listed on IDEAS

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