IMF lifts global growth forecast for 2024

The International Monetary Fund (IMF) has lifted its global growth forecast for 2024 to 3.1%, up from its earlier projection of 2.9% in October. Meanwhile, the figure is expected to rise to 3.2% for 2025.

IMF cited the robust performance of the US economy and the financial measures of China as the drivers behind the upward revision.

According to “World Economic Outlook January” released on Tuesday, advanced economies are expected to see growth decline slightly in 2024 before rising in 2025, with a recovery in the euro area from low growth in 2023 and a moderation of growth in the United States. Emerging market and developing economies are expected to experience stable growth through 2024 and 2025, with regional differences.

In a more detailed breakdown, the economy of the US is expected to grow 2.1% in 2024, up by 0.6% when compared to the previous projection. China’s economy is forecast to expand by 4.6% this year, up by 0.4% from previous estimations. Meanwhile, Eurozone countries are expected to grow by 0.9% in 2024, down by 0.3% from the previous forecast. Moreover, IMF’s growth projection for Türkiye was increased to 3.1% from its earlier expectation of 3% for 2024.

According to Reuters, Asian central banks may mull loosening monetary policy as 2024 wears on amid cooling inflation, the International Monetary Fund said. The Fund warned about risks, meanwhile, and called on China to determine its policies more clearly to recover its real-estate sector.

Elsewhere, growth in India may remain strong at 6.5% in both 2024 and 2025. This indicates slight gains of 0.2% as compared to the October report for both years. Buoyant domestic demand is expected to underpin the country’s economy.

Japan’s growth is projected to slow to 0.9% in 2024 from 1.9% in 2023, the IMF said, citing the waning impact of post-Covid revival.