IMF predicts slightly slower global growth in 2024 and 2025 – World

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Global growth is expected to ease slightly to 3.2 per cent this year and remain at that level in 2025, the International Monetary Fund (IMF) announced on Tuesday, while warning that the stable figures masked “important” regional and sectoral shifts.

In its new World Economic Outlook (WEO) report, the IMF also estimates that global inflation will continue to ease, hitting 5.8 per cent this year, before falling to 4.3pc in 2025.

“We are seeing inflation moving in the right direction without a major slowdown in economic growth or a global recession,” IMF chief economist Pierre-Olivier Gourinchas told AFP in an interview ahead of the report’s publication.

“In our baseline analysis, in advanced economies [inflation] will be back at central bank targets in 2025,” he continued, adding it would take “a little bit longer” for emerging markets.

The Fund’s WEO report noted that global growth is expected to trend to a lacklustre 3.1pc by 2029, and warned of growing risks to that metric.

Beneath the relatively calm outlook for growth through 2025, “the picture is far from monolithic”, the Fund said, warning of “important sectoral and regional shifts” taking place over the past six months.

The WEO’s publication comes a day after the IMF and World Bank Annual Meetings got underway in Washington, bringing together finance ministers and central bankers from around the world for meetings on the health of the global economy.

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