In the World Economic Outlook Update, IMF raised its forecast for global GDP growth in 2023 by 0.2% to 3.0%, while leaving the 2024 projection steady at 3.0%.
The IMF increased 2023 growth estimate for the United States by 0.2% to 1.8%, but pared back 2024 forecast by -0.1% to 1.0%. Eurozone growth forecasts received a slight boost of 0.1% for both 2023 and 2024, bringing them to 0.9% and 1.5% respectively.
On the inflation front, global headline inflation is expected to decline from 8.7% in 2022 to 6.8% in 2023, and further to 5.2% in 2024.
The IMF statement noted that although the 2023 forecast is marginally higher than what was predicted in the April 2023 World Economic Outlook. it still remains “weak by historical standards.”
Furthermore, the IMF drew attention to the impact of rising central bank policy rates used to combat inflation, stating, “The rise in central bank policy rates to fight inflation continues to weigh on economic activity.”
It also emphasized that most economies should prioritize achieving sustained disinflation while ensuring financial stability. Therefore, the IMF urged central banks to “remain focused on restoring price stability and strengthen financial supervision and risk monitoring.”
