IMF projects ‘resilient’ global economic growth in 2024

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IMF points out that inflation should continue to decline and labor markets are resilient

Global economic growth will remain “resilient” this year, after a stronger-than-expected 2023, the International Monetary Fund (IMF) said on Thursday (11), noting that work is needed to boost global growth rates above from an anemic 3% range in the medium term.

IMF spokeswoman Julie Kozack pointed out at a press conference that the global economy appears to be headed for a “soft landing,” with inflation easing and job markets resilient, but low-income countries could still be left behind. back. The IMF is expected to release an update to its economic forecasts later this month.

The World Bank on Tuesday released a grim outlook for 2024, predicting global GDP growth would slow for the third consecutive year to 2.4%, putting poverty reduction targets at risk.

Kozack said dire predictions of recessions in many regions, prevalent a year ago, have not come to fruition in 2023.

“So we have had a relatively resilient global economy so far. We hope this resilience continues into 2024,”

said Kozack, noting that inflation is falling.

But the news is “not all good” because the recent, short-term growth of around 3% is lower than previous, pre-Covid-19 pandemic average global growth rates of around 3.8%. %.

“So we have work to do to lift global growth, especially in the medium term,” Kozack said, adding that the situation pointed to the need for sound policies and reforms that could increase productivity.

Asked whether economic resilience in 2024 would extend beyond the United States, Kozack highlighted that there is a divergence of outlook between countries and regions, with the risk of low-income countries falling further behind.

“They are having a harder time recovering from a series of shocks, including the pandemic, food and oil price shocks,” she said, adding that the IMF’s work in 2024 will have a strong focus on helping member countries. most vulnerable.

*With information from Terra

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