The International Monetary Fund raised its forecast for global economic growth in 2024 by 0.2 percentage points to 3.1%. In 2025, an increase of 3.2% is expected. The outlook has improved from last October due to stronger-than-expected US resilience and financial support in China.
However, the forecast for 2024-2025 is lower than the historical average (2000-2019) of 3.8% due to increased rates by central banks to fight inflation the end of budget support amid high debt.
“The global economy is beginning its final movement toward a soft landing, with inflation steadily declining and growth slowing. But growth rates remain slow, and turbulence may lie ahead,” the IMF noted.
Global inflation is expected to ease to 5.8% in 2024 and to 4.4% in 2025.