U.S. Economy Drives Global Growth Amid Global Challenges

The latest IMF World Economic Outlook projects the U.S. as a key driver of global growth through 2025, buoyed by strong consumer spending overcoming inflation and high interest rates. Emerging markets like India and Brazil stand out positively, while China's growth is sluggish. Risks include trade wars and conflicts.

In its latest World Economic Outlook, the International Monetary Fund (IMF) highlights the United States as the primary engine of global growth for 2024 and 2025. Strong consumer spending, despite high inflation and interest rates, underscores the U.S.'s robust economic performance, projecting a soft landing for its economy.

India and Brazil bolster the positive outlook with significant growth forecasts, contrasting with a dwindling growth rate for China. The IMF cautions against global risks, including potential trade wars and ongoing conflicts, which could impede economic progress.

Despite the optimistic forecast, the IMF observes potential challenges, such as increased tariffs and financial market turmoil. Nevertheless, the U.S. leads developed economies, with a labor market showing resilience, thereby supporting global economic stability.

(With inputs from agencies.)