The International Monetary Fund (IMF) has released its latest World Economic Outlook report, which provides an analysis of the global economic situation and prospects.
Here’s 10 key observations for the world economy, ranging from growth and inflation to trade and financial risks:
IMF expects the world economy to grow by 3.0% in both 2023 and 2024, down from 3.5% in 2022.
IMF projects India’s growth to slow from 7.2% in FY23 to 6.1% in FY24 and then recover to 6.3% by FY25, on a fiscal year basis.
The report estimates global inflation will fall from 8.7% in 2022 to 5.2% in 2024, but remain above pre-pandemic levels of about 3.5%.
IMF’s top economist urges central banks to keep interest rates steady until inflation cools and use other means to ensure financial stability.
World trade growth expected to fall from 5.2% in 2022 to 2.0% in 2023.
IMF expects advanced economies to grow much slower in 2023, from 2.7% to 1.5%.
IMF finds that the rise in interest rates to fight inflation harms growth, especially in advanced economies.
IMF projects that the growth outlook for emerging and developing economies is stable, but with notable differences across regions.
Top economist says the world is recovering from pandemic and Ukraine crisis, but faces many challenges.
The report says global growth is threatened by inflation, financial risks, China slowdown, and debt issues, but also has some hope from lower inflation and stronger demand.