IMF forecasts global growth downturn to 3% in 2024

Posted on November 3, 2023   |  

The IMF's recent economic report predicts that global growth will hold steady at 3% in 2023 and then drop to 2.9% in 2024, representing one of the slowest growth rates in a long while.

Advanced economies are anticipated to experience slower growth, moving from 2.6% in 2022 to 1.5% in 2023 and 1.4% in 2024. 

This slowdown is primarily due to efforts to control rising inflation through policy measures.

Emerging markets and developing economies are also expected to see a slight decrease in growth, transitioning from 4.1% in 2022 to 4% in both 2023 and 2024.

The report underscores a gradual reduction in global inflation, declining from 8.7% in 2022 to 6.9% in 2023 and further to 5.8% in 2024. 

This drop is attributed to the effects of tighter monetary policies and declining prices for commodities.

Nevertheless, core inflation, which excludes food and energy prices, is projected to decrease slower, and it might not return to target levels until 2025 in most regions.

The IMF emphasizes the significance of monitoring central bank actions and communication strategies to manage inflation expectations effectively among various stakeholders.