The global economy is expected to grow about 3 percent this year, broadly in line with last year, while China’s expansion is likely to ease to 4.4 percent, the Association of Chartered Certified Accountants said in a report.
ACCA said global growth will remain steady but unspectacular, supported by looser monetary policy, fiscal stimulus in major economies and continued momentum from artificial intelligence-related investment. However, it warned that heightened geopolitical uncertainty means downside risks have not yet faded.
The report expects the US to retain the strongest growth momentum among major developed economies, with output projected to expand 2.2 percent. Growth in Europe and the United Kingdom is forecast to remain positive but slow, at about 0.9 percent and 1 percent respectively.
China’s economic growth is seen moderating to 4.4 percent, still above the global average, as structural challenges weigh on momentum despite policy support, the report said.
India is expected to once again be the world’s fastest-growing major economy, with growth projected at 6.5 percent, as strong domestic consumption offsets the impact of sharply higher US import tariffs.
