IMF Adjusts Global Growth Forecasts Amid Persistent Economic Risks

The International Monetary Fund has revised 2024 growth forecasts, upgrading the U.S., Brazil, and Britain, while reducing forecasts for China, Japan, and the euro zone. Risks from conflicts, trade tensions, and tight monetary policy remain. Global GDP growth is expected to remain lackluster through 2025.

The International Monetary Fund (IMF) has adjusted its 2024 economic growth forecasts, offering an optimistic outlook for nations like the U.S., Brazil, and Britain but downgrading expectations for China, Japan, and the euro zone. This comes amid ongoing risks from armed conflicts, potential trade wars, and tight monetary policies.

According to the IMF's latest World Economic Outlook, global GDP growth remains unchanged at 3.2% from the July forecast, despite the shifts. It sets a subdued tone for growth as global financial leaders meet for annual IMF and World Bank gatherings in Washington.

IMF chief economist Pierre-Olivier Gourinchas pointed to positive trends in the U.S., India, and Brazil, suggesting a "soft landing" where inflation is cooling without significant job losses. However, Gourinchas voiced concerns about monetary policy becoming too tight, potentially stalling growth and employment.

(With inputs from agencies.)