IMF forecasts stable growth, maintains gloomy forecast medium-term

Economy

Published: 2024-04-16 19:06

Last Updated: 2024-05-28 07:42


Photo: (Saul Gravy/Ikon Images/ Getty Images)
Photo: (Saul Gravy/Ikon Images/ Getty Images)

The International Monetary Fund (IMF) has raised its outlook for the global economy this year, while maintaining a gloomy forecast over the medium term, according to fresh data published Tuesday cited by Agence France-Presse (AFP).

World economy is expected to grow by 3.2 percent this year per the IMF’s forecast, up 0.1 percentage point from its previous prediction in January, and by a further 3.2 percent in 2025, according to the latest World Economic Outlook (WEO) report published by the IMF.

Global headline inflation is expected to ease from 5.9 percent this year to 4.5 percent in 2025, supported by elevated interest rates in many countries.

"The global economy continues to display remarkable resilience, with growth holding steady and inflation declining," IMF chief economist Pierre-Olivier Gourinchas told reporters on Tuesday.

"But many challenges still lie ahead."

"Most indicators continue to point to a soft landing," Gourinchas said, referring to attempts by many central bankers to bring inflation down to target without fueling unemployment or hampering economic growth.

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