2023-07-25 14:36:24
International Monetary Fund
The International Monetary Fund on Tuesday slightly revised its forecast for global growth this year, on the back of resilient services sector activity in the first quarter and a strong labor market.
However, although the economic forecasts that were issued were better than the previous ones in April, these expectations indicate a slowdown in global growth to 3 percent this year compared to last year, so that economic growth will remain around these levels for some time, affected by weak growth among the advanced economies in the world, according to a new report by the International Monetary Fund.
“We are not out of the danger phase yet and growth remains low,” said the chief economist of the International Monetary Fund, Pierre-Olivier Gourenchas, before the report was published.
The global growth forecast for this year has been raised by 0.2% from the International Monetary Fund’s last forecast in April, which puts the global economy on track for 3% growth in both 2023 and 2024.
The Fund also announced in its update of the World Economic Outlook, that this represents a decrease from global economic growth of 6.3 percent in 2021, and 3.5 percent last year.
This is the lowest semi-annual forecast for the fund since the 1990s, reflecting slowing population growth, and the end of an era of economic catch-up, by many countries including China and South Korea.
The fund also noted that the global inflation picture has improved somewhat, with consumer prices now expected to rise 6.8 percent this year, down 0.2 percentage points from the previous forecast in April of 7 percent.
This is “largely due to weak inflation in China,” the International Monetary Fund said, adding that global inflation remains well above pre-pandemic levels of around 3.5 percent.
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