Global Economy Outperforms 2023 Projections, Says IMF Chief
Global economic growth is set to receive a boost in 2024, surpassing earlier projections, according to Kristalina Georgieva, the Managing Director of the International Monetary Fund (IMF). This revised outlook comes on the heels of the IMF's less optimistic October forecast, which anticipated a slowdown in global growth to 3 per cent in 2023 and 2.9 per cent in 2024, significantly below the historical average of 3.8 per cent (2000-2019). Factors impeding the recovery included the enduring effects of the pandemic, the Ukraine conflict, increased geo-economic fragmentation, monetary policy tightening, and extreme weather events.
Speaking at a media house event in Davos on Tuesday, Georgieva noted, "The world economy has proven to be remarkably resilient." She mentioned that 2023 is shaping up better than expected, with some positive momentum carrying over into 2024. The IMF chief highlighted the likelihood of a "soft landing" for the United States as interest rates start to decrease. However, she cautioned that China, the second-largest global economy, could experience growth below 4 per cent unless it implements structural reforms.
The IMF is scheduled to present its updated World Economic Outlook on 30 January. Last week, the World Bank expressed concerns, predicting that global GDP growth in 2024 would decelerate for the third consecutive year to 2.4 per cent, jeopardising poverty reduction goals.
