IMF Raises 2024 Global Growth Forecast

The International Monetary Fund projected that the global economy is resilient and is set to expand at a steady pace in the next two years as inflation returns to target gradually.

Global growth is set to remain at 3.2 percent this year and next, the same as in 2023, the IMF said in its latest World Economic Outlook released on Tuesday.

The forecast for this year was raised by a percentage point from January, while the outlook for next year was retained.

Headline inflation is projected to fall from 6.8 percent last year to 5.9 percent this year and 4.5 percent next year.

"Most indicators continue to point to a soft landing," IMF Economic Counsellor Pierre-Olivier Gourinchas said.

The US economy has already surged past its prepandemic trend, the IMF said, which now estimates more scarring for low-income developing countries, many of which are still struggling to turn the page from the pandemic and cost-of-living crises.

"While inflation trends are encouraging, we are not there yet," Gourinchas said.

The IMF economist expressed concern over the stalling of progress toward inflation targets since the beginning of the year.

"This could be a temporary setback, but there are reasons to remain vigilant," Gourinchas said.

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