Global economy still ‘limping’ – IMF
Director of the IMF Research Department Pierre-Olivier Gourinchas lifts a copy of the World Economic Outlook (WEO) report during at a press briefing on the second day of the annual meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) in Marrakesh on October 10, 2023. The IMF on October 10 left its top-line global growth forecast for 2023 unchanged, despite significant underlying differences between regions, while lifting its inflation outlook for the next couple of years. (Photo by FADEL SENNA / AFP) (Photo by FADEL SENNA/AFP via Getty Images)

Global economy still ‘limping’ – IMF

THE International Monetary Fund (IMF) predicts a slowdown in global growth to 3% this year and 2.9% in 2024 due to increasing disparities.

IMF Chief Economist Pierre-Olivier Gourinchas stated at the launch of the World Economic Outlook that while the global economy is recovering from COVID-19, Russia’s invasion of Ukraine, and the cost-of-living crisis, it is still “limping along, not quite sprinting yet.”

The IMF revised growth forecasts for China and the euro zone, citing low global growth, while increasing U.S. growth forecasts due to robust business investment and consumption..

China’s growth is expected to slow to 4.2% in 2024 due to property crises and weak demand, while Japan’s growth is predicted to be 2.0%, driven by pent-up demand and inbound tourism. Japan’s 2024 growth outlook remains unchanged at 1.0%.

Gourinchas criticized the medium-term outlook for emerging economies, citing slower living standard recovery and increased debt concerns.

Headline and core inflation are expected to decline, with headline inflation decreasing from 9.2% in 2022 to 5.9% this year and 4.8% in 2024. Core inflation, excluding food and energy prices, is expected to gradually decrease to 4.5% next year.

The IMF predicts that most countries are unlikely to achieve inflation targets until 2025.

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