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The IMF said it expects global economic growth to slow to 2.9% in 2024 from an expected 3% this year, mainly due to higher interest rates, the impact of the ongoing war in Ukraine, and widening geopolitical rifts. The IMF predicted that the growth would be 3% in July
The IMF said it expects global economic growth to slow to 2.9% in 2024 from an expected 3% this year, mainly due to higher interest rates, the impact of the ongoing war in Ukraine, and widening geopolitical rifts. The IMF predicted that the growth would be 3% in July.
The deceleration comes at a time when the world has yet to fully mend from a devastating but short-lived COVID-19 recession in 2020. A series of shocks, including the pandemic and Russia’s invasion of Ukraine, has slashed worldwide economic output by about US$3.7 trillion over the past three years compared with pre-COVID trends. These vital growth vectors of the global economy were shared by IMF chief economist Pierre-Olivier Gourinchas ahead of the IMF and World Bank fall meetings this week in Marrakech, Morocco. The IMF’s expectation of 3% growth this year is down from 3.5% in 2022 but unchanged from its July projections.
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He, however, added that the world economy has displayed remarkable resilience at a time when the U.S. Federal Reserve and other central banks worldwide have aggressively raised interest rates to combat a resurgence in inflation. The hikes have helped ease price pressures without putting many people out of work.
