Page 44 - Arvind 2024

Management discussion and analysis
Uplands Golfcourse, Ahmedabad
42 | Arvind SmartSpaces Limited
Global economy
Overview: Global economic growth weakened from 3.5%
in 2022 to around 3.1% in 2023 and this may have been worse but for growth from Asia, which was marked by a weaker-than- expected recovery in China and a better than expected growth in India.
The global economy was marked by a sustained weakness in USA, Britain and Japan entering a recession and most economies
of Europe grappling with high energy costs, weak global consumer sentiment on account of the Ukraine-Russia war, and
the Red Sea crisis resulting in higher logistics costs. A tightening monetary policy translated into
increased policy rates and interest rates for new loans.
The growth rate in advanced economies decelerated to 1.6%
in 2023 but is projected to gradually increase to 1.7% in 2024 and further to 1.8% in 2025. This growth trajectory will be tempered by a modest slowdown in emerging market and developing economies, which are anticipated to decrease from 4.3% in 2023
to 4.2% in both 2024 and 2025. Global inflation is expected to decline steadily from 6.8% in 2023 and 5.9% in 2024, due to a tighter monetary policy aided by relatively lower international commodity prices. Core inflation decline is expected to be more gradual; inflation is not expected to return to target until 2025 in most cases.