IMF sees slow, steady 2024 global growth

The International Monetary Fund said the global economy is set for another year of slow but steady growth. US strength pushes world output through headwinds from lingering high inflation, weak demand in China and Europe, and spillovers from two regional wars.

The IMF forecasts global real GDP growth of 3.2% for 2024 and 2025—the same rate as in 2023. The 2024 forecast was revised upward by 0.1 percentage points from the previous World Economic Outlook estimate in January, largely due to a significant upward revision in the US outlook.

“The global economy continues to display remarkable resilience with growth holding steady and inflation declining, but many challenges still lie ahead,” Pierre-Olivier Gourinchas, the IMF’s chief economist, told reporters.

A potential escalation of the Middle East conflict after Iran’s rocket and drone attack on Israel could have a “strong effect” on limiting growth, he said, adding that it would raise oil prices and inflation, triggering tighter monetary policy from central banks.