IMF raises global economic growth forecast for this year

The International Monetary Fund (IMF) raised its global economic growth forecast for this year from 2.9 percent to 3.1 percent, driven by greater-than-expected resilience in the US and some major emerging economies and fiscal stimulus in China.

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IMF updated its World Economic Outlook Report.

In the report published under the title “Slowing Inflation and Stable Growth Pave the Way for a Soft Landing”, it was reported that the global economy, which is estimated to have grown by 3.1 percent last year, is expected to grow by 3.1 percent this year and the growth rate is estimated to be 3.2 percent next year.

In its report published in October last year, the IMF predicted that the world economy would grow by 2.9 percent in 2024 and 3.2 percent in 2025.



The report said that the higher-than-expected resilience of the US and some large emerging economies and the fiscal support in China were effective in the upward revision in the growth forecast.

The IMF report noted that forecasts for 2024-2025 were below the historical average of 3.8 percent due to higher interest rates to fight inflation, withdrawal of fiscal support due to the pressure on economic activity caused by high debt, and low underlying productivity growth.

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Growth forecast upgraded for the US economy, downgraded for the Eurozone

In the report, which also shared the updated economic growth forecasts of the countries, it was stated that the growth expectation for the US economy was increased from 1.5 percent to 2.1 percent for 2024, while it was reduced from 1.8 percent to 1.7 percent for 2025.

In the report, it was noted that the growth forecast for the Eurozone economy was reduced from 1.2 percent to 0.9 percent for this year and from 1.8 percent to 1.7 percent for 2025.

In the report, it was stated that the growth forecast for Germany, one of the leading economies of Europe, was reduced from 0.9 percent to 0.5 percent for this year and from 2 percent to 1.6 percent for next year, while the growth expectation for the French economy was reduced from 1.3 percent to 1 percent for this year and from 1.8 percent to 1.7 percent for next year.

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In the report, it was reported that while the growth forecast for the Italian economy was maintained at 0.7 percent for 2024, it was increased from 1 percent to 1.1 percent for next year.

In the report, it was stated that the growth forecast for the Spanish economy was reduced from 1.7 percent to 1.5 percent for this year and kept unchanged at 2.1 percent for next year, while the growth expectation for the UK economy was kept at 0.6 percent for this year and reduced from 2 percent to 1.6 percent for next year.

Upward revision in China’s economic growth forecast

In the report, it was stated that in the emerging markets and developing economies group, the growth expectation for the Chinese economy was raised from 4.2 percent to 4.6 percent for this year, while it was maintained at 4.1 percent for next year.

In the report, it was stated that the growth expectations of the Indian economy for this year and next year were increased from 6.3 percent to 6.5 percent, while the growth forecast for the Russian economy was raised from 1.1 percent to 2.6 percent for this year and from 1 percent to 1.1 percent for next year.

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