• Wednesday, May 22, 2024
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BusinessDay

Here are 11 countries that may enter recessions in 2024

These 4 countries  are currently in recession in 2024

The global economic recovery from the pandemic remains fragile, with rising inflation and ongoing geopolitical tensions posing significant risks.

This has led to growing concerns about potential recessions in several countries, including emerging markets heavily reliant on commodity exports.

A recession is typically characterised by two consecutive quarters of negative GDP growth, indicating economic contraction.

Based on the data available from Trading Economics Q3 2023, these nations are showing concerning signs as their GDP growth rates turned negative.

Here are 11 countries, Statisense have predicted may enter recessions in 2024

Bahrain

Bahrain is experiencing a sharp decline with a negative GDP growth rate of -2.43% in Q3 2023. The decline is attributed to a combination of factors, including a reliance on oil exports, regional geopolitical tensions, and the global economic slowdown.

Canada

Canada faces a modest decline with a negative GDP growth rate of -0.30%. The country’s economic challenges stem from uncertainties in global trade, fluctuations in commodity prices, and the impact of the COVID-19 pandemic.

Denmark

Denmark is grappling with a negative GDP growth rate of -0.70%. The economic slowdown is influenced by factors such as a decline in exports, challenges in the manufacturing sector, and changing consumer behaviour.

Ecuador

Ecuador is experiencing economic headwinds with a negative GDP growth rate of -1.33%. The nation’s vulnerability is exacerbated by its dependence on oil exports, external debt issues, and political instability.

Estonia

Estonia is facing a contraction in its economy, reflected in a negative GDP growth rate of -1.3%. Factors such as a slowdown in the European economy, global trade tensions, and cybersecurity concerns are contributing to Estonia’s economic challenges.

Iceland

Iceland is undergoing a significant economic downturn with a staggering -3.8% negative GDP growth rate. The nation is grappling with the aftermath of a tourism-dependent economy hit by the COVID-19 pandemic, coupled with challenges in the financial sector.

Luxembourg

Luxembourg is experiencing a modest decline with a negative GDP growth rate of -0.14%. Factors such as global tax reforms, changes in financial regulations, and uncertainties in the European economy contribute to Luxembourg’s economic challenges.

Moldova

Moldova is facing economic headwinds with a negative GDP growth rate of -0.80%. The nation’s vulnerability is linked to challenges in the agricultural sector, external debt burdens, and geopolitical tensions in the region.

New Zealand

New Zealand is undergoing a slight economic contraction with a negative GDP growth rate of -0.3%. The challenges stem from global supply chain disruptions, uncertainties in international trade, and the impact of external shocks on the country’s economy.

Peru

Peru faces a marginal decline with a negative GDP growth rate of -0.1%. The economic challenges are linked to fluctuations in commodity prices, political uncertainties, and the aftermath of the COVID-19 pandemic.

South Africa

South Africa is experiencing a slight contraction with a negative GDP growth rate of -0.2%. The nation’s economic challenges include high unemployment, structural issues, and external factors such as global trade dynamics and commodity prices.