In the new World Economic Outlook report, IMF said global inflation will fall in 2023 and 2024 amid supar economic growth.
Global growth is projected to fall from 3.4% in 2022 to 2.9% in 2023 (revised up by 0.2%), and then rise back to 3.1% in 2024. Global inflation is projected to fall from 8.8% in 2022 to 6.6% in 2023, and then 4.3% in 2024, staying above pre-pandmeic levels of about 3.5%.
“The year ahead will still be challenging… but it could well represent a turning point with growth bottoming out and inflation declining,” IMF chief economist Pierre-Olivier Gourinchas told reporters.
“The fight against inflation is not yet won,” Gourinchas warned. And it’s “premature to put too much weight on that sort of benign scenario” where prices cool on their own.