IMF Analysis: Global Economy Shows Resilience Amid Uneven Growth
In a recent analysis published by the International Monetary Fund (IMF), experts assert that the global economy remains resilient despite uneven growth.
Following the pandemic, supply chain disruptions, an energy and food crisis due to Russia’s war against Ukraine, and soaring inflation have prompted synchronized tightening of monetary policy worldwide.
Global growth reached its lowest point of 2.3% at the end of 2022, just after the median headline inflation rate peaked at 9.4%.
According to projections in the new World Economic Outlook, growth for this year and next is expected to remain stable at around 3.2%.
The median headline inflation rate is projected to decline from 2.8% at the end of 2024 to 2.4% by the end of 2025. Most indicators suggest a soft landing.
The resilience in growth and the rapid pace of disinflation can be attributed to favorable developments in supply, particularly the dissipation of energy price shocks and a significant rebound in labor supply, bolstered by substantial immigration to many advanced countries.
Despite these positive trends, challenges are expected to emerge. Policymakers must prioritize measures that support economic resilience, including strengthening public finances and revitalizing prospects for economic growth.
