IMF Forecasts Global Growth and Inflation Trends for 2024-2025
According to the International Monetary Fund’s (IMF) April 2024 baseline forecast, global growth is projected to remain steady at 3.2% in 2024 and 2025, mirroring the pace observed in 2023.
The report highlights a slight acceleration in advanced countries, with growth expected to increase from 1.6% in 2023 to 1.7% in 2024 and 1.8% in 2025.
However, this uptick will be offset by a modest deceleration in emerging and developing countries, with growth rates declining from 4.3% in 2023 to 4.2% in both 2024 and 2025.
Notably, global growth is anticipated to average 3.1% over the next five years, marking its weakest level in decades.
Regarding global inflation, the IMF predicts a gradual decline from 6.8% in 2023 to 5.9% in 2024, followed by a further decrease to 4.5% in 2025.
While advanced countries are expected to reach their target inflation levels more swiftly, emerging and developing nations may experience a slower convergence.
Overall, the IMF underscores that inflation excluding energy and food is likely to decelerate at a more moderate pace.
Despite central banks’ efforts to restore price stability through significant rate hikes, the global economy has demonstrated surprising resilience.
