IMF warns of ongoing inflation risk to global economy
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The International Monetary Fund on Tuesday modestly upgraded its outlook for the world economy, but warned of ongoing risks including persistent inflation and geopolitical turmoil.
The Washington-based institution said in its latest World Economic Outlook that global gross domestic product will grow by 3.2% this year – which represents a 0.1 percentage point bump from its January forecast – and expand at that same pace in 2025.
«Despite gloomy predictions, the global economy remains remarkably resilient, with steady growth and inflation slowing almost as quickly as it rose,» said Pierre-Olivier Gourinchas, the IMF’s chief economist, in a blog post.
The latest figures suggest the U.S. economy is likely to grow 2.7% this year and 1.9% in 2025.
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International Monetary Fund (IMF) officials participate in a news conference at the annual meetings of the IMF and World Bank in Washington, D.C., on April 16, 2024. (Photographer: Samuel Corum/Bloomberg via Getty Images / Getty Images)
Still, Gourinchas cautioned that while inflation trends are promising, «we are not there yet.»
The IMF outlook comes one week after the Labor Department reported that inflation rose 3.5% in March, the highest level since September 2023, amid a resurgence in gasoline and rent costs. It marked the third straight month that inflation came in hotter than expected, underscoring the difficulty of taming price growth.
Other parts of the report also pointed to stubborn price pressures within the economy. Core prices, which exclude the more volatile
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