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IMF Maintains Global Growth Forecast at 3.2% for 2024 in July World Economic Outlook Update

1 year ago
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IMF Maintains Global Growth Forecast at 3.2% for 2024 in July World Economic Outlook Update

The International Monetary Fund (IMF) has reaffirmed its global growth projections in its July 2024 World Economic Outlook Update, holding steady at 3.2 percent for 2024 and 3.3 percent for 2025, consistent with its April forecast.

The report notes that while the varied momentum in economic activity at the start of the year has narrowed the output divergence among economies, persistent services price inflation is complicating the path to disinflation.

The IMF highlights that these inflationary pressures are challenging efforts to normalize monetary policy, with the prospect of higher interest rates for a longer duration becoming more likely.

This situation is further exacerbated by escalating trade tensions and increased policy uncertainty.

To manage these risks and support growth, the IMF advocates for a carefully sequenced policy mix aimed at achieving price stability and replenishing depleted economic buffers.

The report underscores the importance of strategic policy coordination to navigate the complex global economic landscape.

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