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IMF says global economy ‘remains remarkably resilient’

2 years ago
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IMF says global economy ‘remains remarkably resilient’

The International Monetary Fund (IMF) has released its latest World Economic Outlook, projecting that growth will remain steady at 3.2% this year and next. The outlook suggests that global growth bottomed out at the end of 2022—at 2.3%—with inflation peaking shortly after.

“Most indicators continue to point to a soft landing,” Pierre-Olivier Gourinchas, the IMF’s Economic Counsellor and the Director of Research, wrote in a blog on the fund’s website.

He said the global economy “remains remarkably resilient”. Growth is steady and inflation continues to slow – “almost as quickly as it rose”. However, Gourinchas did warn of the numerous challenges that remain, which call for decisive actions. With risks including inflation and economic divergence, he called on policymakers to “prioritize measures that help preserve or even enhance the resilience of the global economy”.

The IMF called for fiscal restraint, especially in a year of numerous elections worldwide, with the fund warning that budget overruns were more likely in election years.

“The most acute risk to public finances arises from the record number of elections being held in 2024, which has led to it being dubbed the ‘Great Election Year’,” it said in its new Fiscal Monitor publication.

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