Global Economy Faces ‘Rocky’ Recovery, IMF Says
The global economy faces a “rocky” recovery as geopolitics, monetary tightening and inflation continue to weigh on growth, the International Monetary Fund has said.
Inflation is beginning to decline while the reopening of China, the world’s second-largest economy, is supporting global growth and supply chains are improving. Additionally, while the recovery from the Ukraine war and the Covid-19 pandemic is on track — the rebound across countries is fragmented, the Washington-based lender said in its World Economic Outlook report released on Tuesday.
The fund lowered its global economic growth estimate for this year by 0.1 percentage points to 2.8 per cent, from what it previously projected in January, with the estimate below the 3.4 per cent expansion recorded in 2022 and the historical growth average of 3.8 per cent over the 2000-2019 period.
The global economy is projected to grow 3 per cent in 2024, a 0.1 percentage point decline from the previous estimate.
Five-year-ahead growth forecasts declined steadily to 3 per cent in 2023, from 4.6 per cent in 2011.
