IMF projects global growth to slow to 2.9% in 2024 amid economic slowdown

The IMF’s baseline forecast indicates a slowdown in global growth from 3.5% in 2022, to 3% in 2023, and 2.9% in 2024, falling below the historical average of 3.8% recorded between 2000-2019.

The International Monetary Fund (IMF) has released its latest economic projections, stating that global growth is expected to remain at 3% in 2023 and further decline to 2.9 % in 2024, as per an ANI report.

This marks one of the lowest growth rates in decades. According to the IMF’s “Navigating Global Divergences” report for October 2023, substantial economic recovery on a global scale faces significant challenges.

The baseline forecast indicates a slowdown in global growth from 3.5 % in 2022, to 3 % in 2023, and 2.9 % in 2024, falling below the historical average of 3.8 % recorded between 2000 and 2019. Advanced economies are also expected to experience a decline, dropping from 2.6 % growth in 2022 to 1.5 % in 2023 and 1.4 % in 2024.

This is attributed to policy tightening aimed at curbing inflation.Emerging markets and developing economies are likely to witness a slight decrease in growth from 4.1% in 2022 to 4 % in both 2023 and 2024.

The report highlights that global inflation is expected to gradually decrease, declining from 8.7 % in 2022, to 6.9 % in 2023, and 5.8 % in 2024.

Tighter monetary policies and lower international commodity prices contribute to this decline. However, core inflation is projected to decrease at a slower pace, with a return to target inflation not expected until 2025 in most cases. (ANI)

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