Global Inflation Battle Won with Minimal Slowdown, Says IMF

The International Monetary Fund (IMF) reports a successful battle against global inflation with minimal impact on economic growth. Inflation is expected to decrease significantly by 2025, and while major economies like the U.S. and Europe continue to grow, challenges such as geopolitical tensions remain.

The International Monetary Fund (IMF) announced a significant victory over global inflation with a minimal toll on economic progress. According to the IMF's latest global economic assessment, inflation is projected to cool from 6.7% in 2022 to 4.3% by 2025. Wealthy nations will see an even sharper decline in inflation rates.

This shift follows aggressive rate hikes by central banks such as the Federal Reserve and the European Central Bank, which have recently cut rates as inflation abated. However, the IMF warns that large fiscal deficits could constrain growth even as interest rates fall, impacting the global economic picture.

Despite improvements, geopolitical tensions, such as those between the United States and China, still pose risks to global trade. Economic growth in countries like China is expected to slow, while forecasts for the U.S. and Europe show more modest gains ahead.

(With inputs from agencies.)