IMF October 2024 World Economic Outlook Highlights.
Washington, DC, October 22, 2024 —The outlook for global economic growth has shown improvement; however, medium-term challenges persist. The International Monetary Fund (IMF) reported this assessment in its latest forecast, published on Tuesday, October 22, in Washington, DC.
Photo: Flags representing the 191 member countries line the stairs of the IMF Headquarters atrium, positioned in preparation for the Annual Meetings of the World Bank Group and International Monetary Fund, which will take place in Washington, DC, in October 2024. IMF Photo/Melissa Lyttle. Copyright © IMF.
Photo: Behind the scenes during 2024 Annual Meetings of the World Bank Group and International Monetary Fund in Washington, DC, on October 21, 2024. IMF Photo/Lewis Joly. Copyright © IMF.
Inflation gradually aligns with target levels, and growth stabilizes; however, the International Monetary Fund has indicated that long-term productivity improvements remain unsatisfactory. This assessment precedes the release of the World Economic Outlook during this week’s Annual Meetings.
“We have positive developments regarding inflation, which is declining as anticipated. In most countries, we expect inflation to return to targeted levels. Furthermore, the global economy demonstrates considerable resilience, and we forecast a growth rate of 3.2 percent for both this year and the next. Nonetheless, it is important to note that in the medium term, we project lackluster growth of just above 3 percent,” stated Petya Koeva-Brooks, Deputy Director of Research at the International Monetary Fund.
The report’s release follows ongoing conflicts in Ukraine and the Middle East, which have created geopolitical uncertainty. Many advanced economies are indicating a shift towards more protectionist policies.
“Unlike the previous assessment, our view indicates that the risks are predominantly tilted to the downside. The key downside risks we identify include the possibility of an escalation in geopolitical conflicts, an increase in trade protectionism, a more pronounced weakening of labor markets than anticipated in our baseline expectations, or a resurgence of turbulence in the financial markets,” stated Koeva-Brooks.
What actions can be taken? The IMF provided policymakers with three primary policy recommendations:
- Monetary Policy: Central banks should focus on enhancing support for economic activities in regions where inflation remains stable.
- Fiscal Policy: A credible fiscal consolidation process that is executed in a manner conducive to sustaining economic growth is imperative.
- Structural Reforms: Implementing structural reforms to increase productivity and expand the labor supply is critical to promoting medium-term economic growth.
Source: IMF
— CitiTimes editor has an IMF academic certification.
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