IMF raises growth forecast for global economy
FirstpostThe two biggest economies in the world, China and the United States, have improved economic prospects, according to the International Monetary Fund, which raised its prediction for global growth on Tuesday. Although a “soft landing” appeared to be imminent, according to the IMF’s most recent World Economic Outlook, head economist Pierre-Olivier Gourinchas noted that global trade and overall GDP were still below historical norms. “We find that the global economy continues to display remarkable resilience and we are now in the final descent toward a ‘soft landing’ with inflation declining steadily and growth holding up. The IMF predicted 3.1% global growth in 2024, which was two tenths of a percentage point higher than its October estimate. With inflation expected to meet central bank targets of 2% in 2025, advanced economies should have average inflation of 2.6%, down four tenths of a percentage point from the October prediction.