The International Monetary Fund (IMF) has said that the global economy has shown remarkable resilience, with steady growth defying recession fears.
The Find projects global growth at 3.2% in 2024 and 2025 in their latest World Economic Forum (WEO) – a slight upgrade but below the 3.8% historical average.
The baseline forecast is for the world economy to continue growing at 3.2 percent during 2024 and 2025, at the same pace as in 2023.
A slight acceleration for advanced economies—where growth is expected to rise from 1.6 percent in 2023 to 1.7 percent in 2024 and 1.8 percent in 2025—will be offset by a modest slowdown in emerging market and developing economies from 4.3 percent in 2023 to 4.2 percent in both 2024 and 2025.
The global economy has shown remarkable resilience, with steady growth defying recession fears. We project global growth at 3.2% in 2024 and 2025 in our latest WEO – a slight upgrade but below the 3.8% historical average. More here. https://t.co/tPL4fgygu4 pic.twitter.com/sqCAfR4nW4
— IMF (@IMFNews) April 28, 2024
The forecast for global growth five years from now—at 3.1 percent—is at its lowest in decades. Global inflation is forecast to decline steadily, from 6.8 percent in 2023 to 5.9 percent in 2024 and 4.5 percent in 2025, with advanced economies returning to their inflation targets sooner than emerging market and developing economies.
Core inflation is generally projected to decline more gradually.
“The global economy has been surprisingly resilient, despite significant central bank interest rate hikes to restore price stability.
It explains that changes in mortgage and housing markets over the prepandemic decade of low interest rates moderated the near-term impact of policy rate hikes. The report also focuses on medium-term prospects and shows that the lower predicted growth in output per person stems, notably, from persistent structural frictions preventing capital and labor from moving to productive firms.
It further indicates how dimmer prospects for growth in China and other large emerging market economies will weigh on trading partners.
