BAKU, Azerbaijan, January 30. Global GDP growth is expected to remain steady at 3.1 percent in 2024 and 3.2 percent in 2025, the International Monetary Fund (IMF) says, Trend reports.
Thus, the forecast for worl economic growth has been upgraded by 0.2 percentage point, compared to October 2023 estimations, due to the stronger-than-anticipated resilience in the US and several significant emerging market and developing economies, along with fiscal support in China.
The forecast for 2024–25 is, nonetheless, lower than the historical average from 2000 to 2019, which stood at 3.8 percent. This is attributed to heightened central bank policy rates aimed at curbing inflation, a reduction in fiscal support amid high debt impacting economic activity, and sluggish underlying productivity growth, the IMF added.
Meanwhile, inflation is decreasing more rapidly than anticipated in most regions, driven by the resolution of supply-side issues and the implementation of restrictive monetary policies. Thus, global headline inflation is projected to decline to 5.8 percent in 2024 and further to 4.4 percent in 2025, with a downward revision in the 2025 forecast.