THE International Monetary Fund (IMF) on Tuesday maintained its global growth forecast in 2024 at 3.2 per cent, consistent with its projection in July, according to its newly released World Economic Outlook (WEO).
The level of uncertainty surrounding the global economic outlook is high, the report noted.
“Newly elected governments (about half of the world population has gone or will go to the polls in 2024) could introduce significant shifts in trade and fiscal policy,” the report said.
“Moreover, the return of financial market volatility over the summer has stirred old fears about hidden vulnerabilities. This has heightened anxiety over the appropriate monetary policy stance — especially in countries where inflation is persistent and signs of slowdown are emerging,” it further said.
The report also noted that a further intensification of geopolitical rifts could weigh on trade, investment and the free flow of ideas. “This could affect long-term growth, threaten the resilience of supply chains, and create difficult trade-offs for central banks,” it said.
In response to a question from Xinhua, IMF Chief Economist Pierre-Olivier Gourinchas said at a press conference that rising geopolitical tensions are “something that we are very concerned about”, noting that there are two dimensions of the impact.
Xinhua
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