IMF raises 2023 global economic outlook but predicts declining growth.
IMF nudges up 2023 global economic outlook but warns of slowing growth ahead. According to the International Monetary Fund’s (IMF) most recent prediction, which was issued in April, the global growth forecast for this year was increased by 0.2 percentage points. This puts the global economy on track for growth of three percent in both 2023 and 2024.
WASHINGTON: The solid service sector activity in the first quarter and a robust labour market have led the International Monetary Fund to marginally increase its projection for global growth this year, the lender said on Tuesday.
The IMF stated in a new research that despite the slightly brighter economic outlook, poor growth in the world’s advanced economies will cause global GDP to fall to 3% this year and then remain there.
“We’re not out of the woods yet, and growth remains on the low side,” IMF Chief Economist Pierre-Olivier Gourinchas told AFP in an interview before the report was released.
The IMF revised its estimate of global growth for this year by 0.2 percentage points, putting the world economy on track for three percent growth in both 2023 and 2024.
The IMF stated in its update to the World Economic Outlook (WEO) that this is down from global economic growth of 6.3 percent in 2021 and 3.5 percent last year.
With the slowdown of population growth and the end of the period of economic catch-up by numerous nations, particularly China and South Korea, the IMF released its lowest medium-term prediction since the 1990s.
The IMF said on Tuesday that there has been some improvement in the global inflation outlook, with consumer prices now expected to rise by 6.8 percent this year, down 0.2 percentage points from the previous prediction in April.
According to the IMF, this is “largely attributable to China’s moderate inflation,” which is nevertheless significantly higher than the pre-pandemic level of 3.5%.
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