The Impact of 2024's Global Economic Slowdown on Women's Progress

The "World Economic Situation and Prospects " report for 2024, published by the United Nations, provides a comprehensive outlook on the global economy and its implications, particularly for women. The report indicates a global economic slowdown, with growth projected to decrease from 2.7% in 2023 to 2.4% in 2024. This deceleration stems from several factors, including high-interest rates, geopolitical conflicts, sluggish international trade, and escalating climate disasters.

The implications of this economic slowdown are particularly significant for women, especially in developing countries. These are the key areas where the impact is most pronounced:

• Inflation and Its Impact: Although high inflation is expected to decline from 5.7% in 2023 to 3.9% in 2024, it continues to exert pressure on economies worldwide. Developing countries are expected to be hardest hit, with inflation rates exceeding 10% in about a quarter of these nations since 2021. This inflation significantly erodes the economic gains post-COVID-19, with severe impacts on poverty eradication efforts, disproportionately affecting women in the least developed countries.
• Labour Market Disparities: While developed countries have seen a robust recovery in their labor markets post-pandemic, the scenario in developing countries is mixed. Notably, the global labor force participation rate for women fell to 47.2% in 2023, a decrease from 48.1% in 2013. This decline, along with a high NEET (not in employment, education, or training) rate among youth, underscores the ongoing challenges in achieving gender parity in the workforce.
• Challenges in Global Investment: The slowdown in global investment growth affects both developed and developing economies, with the latter facing additional challenges such as capital flight and reduced foreign direct investment. While investment in sustainable sectors like green energy and digital infrastructure is ongoing in developed countries, the pace is insufficient to meet climate goals. This could further impact women in sectors vulnerable to climate change.
• International Trade and Finance: Global trade growth is weakening, and international finance conditions are tightening, especially for developing countries grappling with high levels of external debt and rising interest rates. These economic conditions may lead to reduced economic opportunities for women, particularly in countries dependent on global trade.

The report underscores the importance of global cooperation and the need for bold investments in sustainable development and climate action to address these challenges. It also highlights the need for policies and investments that specifically target the economic empowerment and inclusion of women, which is crucial for achieving the Sustainable Development Goals.

The economic downturn projected for 2024 will likely have a disproportionate impact on women, especially in developing countries, through increased inflation, labor market disparities, and challenges in global investment and trade. This situation necessitates a concerted effort at both national and international levels to implement gender-responsive policies and investments to mitigate these impacts.