Key Takeaways
- The IMF maintains its 2024 global growth forecast at 3.2 percent, consistent with its projection in July.
- Newly elected governments in 2024 could introduce significant shifts in trade and fiscal policy, according to the IMF’s World Economic Outlook report.
- The report highlights the return of financial market volatility, geopolitical rifts, and persistent inflation as potential risks to global economic growth in 2024.
Washington: The International Monetary Fund (IMF) on Tuesday maintained its global growth forecast in 2024 at 3.2 percent, consistent with its projection in July, its newly released World Economic Outlook (WEO) report said.
The level of uncertainty surrounding the global economic outlook is high, the report noted.
“Newly elected governments (about half of the world population has gone or will go to the polls in 2024) could introduce significant shifts in trade and fiscal policy,” the report said.
“Moreover, the return of financial market volatility over the summer has stirred old fears about hidden vulnerabilities. This has heightened anxiety over the appropriate monetary policy stance — especially in countries where inflation is persistent and signs of slowdown are emerging,” it further said.
The report also noted that a further intensification of geopolitical rifts could weigh on trade, investment and the free flow of ideas. “This could affect long-term growth, threaten the resilience of supply chains, and create difficult trade-offs for central banks,” it said.
