The International Monetary Fund (IMF) has released its World Economic Outlook for 2024, predicting a global economic growth of 3.2%. Despite the ongoing pandemic, the IMF has upgraded its outlook for the world economy due to strong growth prospects in India and the United States.
The IMF has projected a decline in China’s economic growth this year, but expects a gradual recovery in much of Europe compared to the United States. Although the short-term outlook is positive, the five-year growth forecast of 3.1% is the lowest it has been in decades due to weak productivity growth and geopolitical fragmentation.
The chance of a global recession, defined as global growth falling below 2%, is only 10%. The United States is experiencing a strong rebound in economic growth, with a projected growth rate of 2.7% for this year, which is an upward revision from the IMF’s previous projection. India’s growth prospects have also been upgraded to 6.8%, while China’s growth is projected to decline to 4.6% from last year’s 5.2%.
Overall, the IMF’s World Economic Outlook for 2024 highlights both positive and negative trends for the global economy. While some countries are experiencing strong economic growth, there are concerns about long-term economic growth trends and the impact of geopolitical conflicts on global economic stability.