IMF forecasts stable global growth and further decline in inflation in 2025
11 January 2025 14:28
Most countries in the world need to cut costs and adopt reforms to stimulate growth in the long term. This was stated by IMF Managing Director Kristalina Georgieva, "Komersant Ukrainian" reports.
Reuters, which cites her statement, reminds that the IMF will publish an update to its global forecast on January 17, a few days before Donald Trump takes office, and Kristalina Georgieva’s comments are the first evidence of a change in the IMF’s global outlook this year.
According to Kristalina Georgieva, the International Monetary Fund forecasts stable global growth and further decline in inflation, which will be reflected in the updated forecast of the global economy.
The IMF Managing Director also said that the US economy is doing “a little better” than expected, although there was high uncertainty surrounding the trade policy of President-elect Donald Trump’s administration, which created a headwind for the global economy and pushed up long-term interest rates.
As inflation is approaching the target set by the US Federal Reserve, and recent data indicate stability in the labor market, the Fed, according to Kristalina Georgieva, can afford to wait for additional data before making further interest rate cuts.
Reuters reminds that in October, the IMF raised its economic growth forecasts for 2024 for the United States, Brazil, and the United Kingdom, but lowered them for China, Japan, and the eurozone, citing the risks of potential new trade wars, armed conflicts, and tight monetary policy.
The IMF then left its global growth forecast for 2024 unchanged at 3.2%, as projected in July, and lowered its global growth forecast of 3.2% in 2025 by one-tenth of a percentage point,
“Not surprisingly, given the size and role of the US economy, there is a great deal of interest around the world in the new administration’s policy directions, particularly on tariffs, taxes, deregulation and government efficiency,” Georgieva said.
Also, she said, a strong US dollar could potentially lead to higher financing costs for emerging market economies, and especially for low-income countries.
