IMF raises global growth forecast for 2024 to 3.1%, from 2.9% previously

• Lowered inflation forecast for 2025 to 4.4%, compared to 4.6% previously.

• Growth remains slower than the historical average of 3.8%, reflecting high interest rates and sluggish productivity growth.

• The IMF is concerned that rising trade tensions and geopolitical economic fragmentation could constrain global growth.

Updated 2024 economic forecast:

• US: GDP growth is expected to reach 2.1% compared to 1.5% from October.

• Germany: GDP growth is expected to reach 0.5% for 2024 compared to 0.9% in October, but to reach 1.6% in 2025 compared to 2.0% previously.

• China: GDP growth is expected to reach 4.6% compared to 4.2% from October.

• Eurozone: GDP growth is expected to reach 0.9% compared to 1.2% in October.

The IMF forecasts the Fed, ECB and BoE will keep interest rates at current levels until the second half of 2024.