IMF's economic view: Brighter outlook for China and India but tepid global growth
abcnews.go.comThe International Monetary Fund has upgraded its economic outlook this year for China, India and Europe while modestly lowering expectations for the United States and Japan
WASHINGTON — The International Monetary Fund on Tuesday upgraded its economic outlook this year for China, India and Europe while modestly lowering expectations for the United States and Japan. But it says worldwide progress against accelerating prices has been slowed by stickier-than-expected inflation for services, from airline travel to restaurant meals.
Overall, the IMF said it still expects the world economy to grow a lackluster 3.2% this year, unchanged from its previous forecast in April and down a tick from 3.3% growth in 2023.
“Global growth remains steady," Pierre-Olivier Gourinchas, the IMF's chief economist, told reporters.
Still, the world economy's expansion remains unimpressive by recent historical standards. From 2000 through 2019, before the pandemic upended economic activity, global growth had averaged 3.8% a year.
The IMF, a 190-nation lending organization, works to promote economic growth and financial stability and reduce global poverty.
Gourinchas estimated that China and India would account for nearly half of global growth this year.
Partly because of a surge in Chinese exports at the start of 2024, the IMF upgraded its growth forecast for China this year to 5% from the 4.6% it had projected in April, though down from 5.2% in 2023. The IMF forecast was posted before Beijing reported Monday that the Chinese economy, the world’s second-largest after the United States, had grown at a slower-than-expected 4.7% annual rate from April through June, down from 5.3% in the first three months of the year.
China’s economy, which once
Read more on abcnews.go.com
