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.