The International Monetary Fund (IMF) has projected that global growth is to remain unchanged at 3.2 per cent in 2024 and 3.3 per cent in 2025.
This was stated via the IMF’s latest World Economic Outlook (WEO) Update Report for July 2024.
The report said though the projection was in line with the April 2024 WEO, there had been notable developments beneath the surface since the April WEO.
It said among advanced economies, growth was expected to converge over the coming quarters, like in the United States, projected growth was revised downward to 2.6 per cent in 2024.
“This is 0.1 percentage point lower than what was projected in April, reflecting the slower-than-expected start to the year.
“Growth is expected to slow to 1.9 per cent in 2025 as the labour market cools and consumption moderates, with fiscal policy starting to tighten gradually.”
The report said in the Euro area, a modest pickup of 0.9 per cent was expected for 2024, after a nearly flat performance in 2023.
“This is driven by stronger momentum in services and higher-than-expected net exports in the first half of the year.
It said in emerging markets and developing economies, the forecast for growth was revised upward; the projected increase was powered by stronger activity in Asia, particularly China and India.
“For China, the growth forecast is revised upward to five per cent in 2024, primarily on account of a rebound in private consumption and strong exports in the first quarter.
“ The forecast for growth in India has also been revised upward, to 7.0 per cent, this year.”
For Latin America and the Caribbean, the report showed that growth had been revised downward for 2024 in Brazil, reflecting the near-term impact of flooding, and in Mexico, due to moderation in demand.
