International credit rating agency Moody’s said Wednesday in its newest report it expects global growth to slow down in 2024 before bouncing back in the year after while renewing its prediction for Turkish economic growth of 4.2% for this year.

The agency's Global Macro Outlook 2024-25 Report titled "G20’s growth dynamics are different amid the ongoing global slowdown," stated that global growth will slow down in 2024 as high interest rates spread to the real economy through credit channels.

The report stated that inflation would continue to cool as demand slows down in 2024 as central banks maintain their tight policy stance, and noted that global growth is expected to strengthen in 2025 unless there are unexpected shocks.

The report stated that the growth rate of G-20 economies is expected to be 2.8% this year, 2.1% next year and 2.6% in 2025.

In its forecasts published in August, Moody’s predicted that G-20 economies would grow 2.5% this year and 2.1% next year.

The report estimates that the developed economies of the G-20 will grow 1.7% this year, 1% next year and 1.8% in 2025, while developing economies will grow 4.3% this year, 3.7% next year and 3.8% in 2025.

Moody's stated that the economic slowdown will be irregular and that the growth of the U.S. economy remains strong but will slow down in 2024.

The growth expectation of the U.S. economy was lifted from 1.9% to 2.4% this year, and was maintained at 1% next year, the report stated. It was estimated that the U.S. economy would grow by 2% in 2025.

The report stated that the eurozone will be hit harder in 2023 and its economic growth will remain weak in 2024, and the growth forecast for the regional economy is maintained at 0.7% for this year, and it is expected to be 1.2% for the next year.

Furthermore, it said that the Chinese economy is expected to reach the 5% growth target in 2023, but growth is estimated to decrease to 4% in 2024 and 2025.

It also noted that the Turkish economy is expected to grow by 4.2% this year, 2.6% next year and 3% in 2025.

The credit rating agency had previously predicted that the Turkish economy would grow by 4.2% this year and 3% next year.

The report warned that climate or geopolitical events could lead to fluctuations caused by sudden increases in energy and food prices.