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Economic growth

Slowing Down and Divergence in Growth are Barriers to Modern Global Economy Sustainability

Strategic Insights

— 2 min read

Over the past few decades, the global economy has been facing numerous challenges that have increased uncertainty in its development. The decline in aggregate factor productivity has been a significant concern, affecting economic growth and sustainability worldwide. A recent study conducted by researchers at the State University of Management analyzed the factors and mechanisms behind the dynamics of global economic growth, with a focus on identifying the challenges of slowdown and divergence. The study suggests that if growth slows down in the medium term, it will have a negative impact on income convergence between states, exacerbating global inequality and welfare issues.

Key Takeaways:

  • The study identified several determinants that have increased uncertainty in the global economy development, including the decline in aggregate factor productivity and the impact of economic policies on individual countries.
  • The researchers analyzed scenarios of global economic growth for the medium term, suggesting opportunities to prevent a slowdown in growth and mitigate its negative consequences.
  • The study highlighted the importance of addressing the challenges of slowdown and divergence in growth to ensure the sustainability of the global economy.
  • The researchers emphasized the need for policy-makers to consider the distributional consequences of a slowdown in growth on global inequality and welfare.
  • The study provided a detailed analysis of the factors that contribute to the growth divergence and uncertainty, including the use of examples from individual countries.
  • The researchers assessed the negative risks of global economic growth in the future, related to ongoing inflation and recession concerns.
  • The study suggests that the slowdown in growth will have a negative impact on income convergence between states, making it increasingly difficult for poor countries to catch up with rich ones.
  • The researchers estimated that the decline in aggregate factor productivity has affected economic growth and sustainability worldwide, with significant consequences for global inequality and welfare.
  • The study identified several mechanisms that determine the growth divergence and uncertainty, including economic policies implemented in individual countries.
  • The researchers presented several scenarios of global economic growth for the medium term, highlighting the opportunities to prevent a slowdown in growth and mitigate its negative consequences.

Statistics:

  • 2022-2024 saw the emergence of new growth trends, which were systematized in the study.
  • The researchers analyzed the impact of economic policies on individual countries, including those implemented to counter inflation.
  • The study estimated that the decline in aggregate factor productivity has affected economic growth and sustainability worldwide, with significant consequences for global inequality and welfare.
  • The researchers assessed the negative risks of global economic growth in the future, related to ongoing inflation and recession concerns.
  • The study identified several scenarios of global economic growth for the medium term, suggesting opportunities to prevent a slowdown in growth.

Sources:

  • Slowing down and divergence in growth are the barriers to the modern global economy sustainability. Upravlenie, 2025,13(2):66-79. (Upravlenie - https://upravlenie.guu.ru/jour)
  • NewsRx. Research Results from State University of Management Update Knowledge of Sustainability Research (Slowing down and divergence in growth are the barriers to the modern global economy sustainability). Ecology, Environment & Conservation. July 4, 2025; p 676.

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