KUALA LUMPUR, Oct 13 ― The global economy is projected to grow by three per cent in 2024 as a result of moderate growth in both advanced economies and emerging market and developing economies (EMDEs).

In its Economic Outlook 2024 report released today, the Ministry of Finance (MoF) said advanced economies' growth is expected to moderate further to 1.4 per cent, which will continue to weigh down global growth.

The ministry said the United States’ gross domestic product (GDP) is anticipated to grow at a slower pace by one per cent amid continuous monetary policy tightening.

Meanwhile, growth in the eurozone is expected to expand slightly to 1.5 per cent supported by stronger services and tourism activities.

"The EMDEs growth is projected to expand by 4.1 per cent with China's economy forecast to moderate to 4.5 per cent, underpinned by continuous lower investment and bearish labour market.

"The Asean-5's (Indonesia, Malaysia, the Philippines, Singapore and Thailand) growth is forecast to moderate to 4.5 per cent,” said the MoF.

Global trade is projected to improve to 3.7 per cent following uptrend trade activities in advanced economies and EMDEs which are expected to grow by 3.2 per cent and 4.5 per cent respectively.

Both exports and imports in advanced economies are expected to grow by 3.1 per cent and 2.7 per cent.

Exports would grow by 4.3 per cent and imports by 5.1 per cent for EMDEs.

"Underpinned by the expected further tightening of monetary policies, global inflation is forecast at 5.2 per cent with advanced economies projected at 2.8 per cent and EMDEs at 6.8 per cent.

"These are also supported by improvements in the global supply chain as well as easing of energy and food prices,” it said.

Back home, the services sector is forecast to increase by 5.6 per cent in 2024 driven by expansion in all subsectors, the MoF said.

Vibrant tourism-related activities as well as continuous consumer spending are expected to further spur the growth of the sector.

The wholesale and retail trade subsector will remain as the key contributor to the services sector with 5.6 per cent growth seen.

"The growth will be driven by expansion in the retail segment through wider automation, e-commerce and omnichannel shopping experience, which enable seamless physical and online interactions,” said the MoF. ― Bernama