IMF's Latest Forecast: A Global Economic Watch

The International Monetary Fund (IMF) has updated its economic outlook, highlighting stronger U.S. growth but downgrading prospects for Europe and China. Global growth remains projected at 3.2%. Inflation rates are cooling, yet fiscal constraints may slow growth, with geopolitical tensions posing additional risks to global trade efficiency.

The International Monetary Fund (IMF) revised its economic outlook for 2023, forecasting stronger growth for the United States but less optimistic expectations for Europe and China.

Despite unchanged global growth projections of 3.2% for 2024, the US economy is expected to grow by 2.8% this year, spurred by robust consumer spending amid rising real wages. However, a slow down to 2.2% is anticipated in 2025, as fiscal policy shifts might constrain progress.

Globally, inflation is easing, allowing major central banks to reduce rates, yet growing fiscal challenges and geopolitical tensions could hinder future growth. Meanwhile, IMF raises concerns over potential disruptions in global trade efficiency due to US-China relations.

(With inputs from agencies.)