MARRAKESH, (Pakistan Point News - 10th Oct, 2023) The International Monetary Fund (IMF) has forecast that global economic growth will slow from 3.5 percent in 2022 to 3 percent in 2023 and 2.9 percent in 2024.
The IMF's World Economic Outlook report, released today on the sidelines of the IMF and World Bank meetings in Marrakesh, Morocco, said that the global economy is still recovering slowly from the impact of the COVID-19 pandemic, global geopolitical tensions, and the cost of living crisis.
The report found that global economic activity is still below pre-pandemic levels, especially in emerging markets and developing economies. It identified several forces that are hindering the recovery, including the long-term consequences of the pandemic and geopolitical tensions, as well as the effects of tightening monetary policy and climate events.
The report estimated that economic activity in advanced economies will slow from 2.6 percent in 2022 to 1.5 percent in 2023 and 1.4 percent in 2024. The United States is expected to experience stronger-than-expected growth in 2023, while the euro area is expected to see weaker-than-expected growth.
The IMF report forecasts that emerging markets and developing economies will see a limited decline in growth from 4.1 percent in 2022 to 4 percent in 2023 and 2024.
The report noted that the global growth forecast for the medium term of 3.1 percent is the lowest in decades. It also pointed out that global inflation is expected to decline steadily from 8.7 percent in 2022 to 6.9 percent in 2023 and then to 5.8 percent in 2024. The report noted that the forecasts for 2023 and 2024 have been revised upward by 0.1 percentage points and 0.6 percentage points, respectively. However, it does not expect inflation to return to its target level until 2025 in most cases.
