Global economic growth rate is estimated to be 3.2 percent this year: IMF
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Washington. The International Monetary Fund (IMF) has increased the global growth rate estimate for this year to 3.2 percent. It said the outlook for the global economy remains bright, with inflation under control without economic damage and output remaining high. In the latest world economic scenario, the Monetary Fund has estimated the global growth rate to be 3.2 percent this year. This is more than the estimate of 3.1 percent expressed in January. This level of growth rate is equal to 2023.
According to the world economic outlook, the growth rate is expected to be 3.2 percent in 2025 also. If this happens, it will be the third consecutive year when the growth rate will be at this level. The Monetary Fund said in its latest assessment that the global economy is being boosted by unexpectedly strong growth in the US, the world’s largest economy. The IMF estimates that the growth rate of the US economy this year will be 2.7 percent, which is more than the 2.1 percent estimate made in January. This is more than the 2.5 percent increase in 2023.
However, sharp rise in prices worldwide remains a hurdle. The IMF estimates that global inflation will decline from 6.8 percent last year to 5.9 percent in 2024 and 4.5 percent next year. Inflation in the world’s developed economies is projected to decline to 2.6 percent this year and two percent in 2025. It was 4.6 percent in 2023. The reason for reduction in inflation is the effect of high interest rates. The US central bank Federal Reserve, Bank of Japan, European Central Bank and Bank of England have sharply increased the policy rate to bring down inflation to around two percent.
The IMF warned that economic growth could be hampered by the adverse effects of higher interest rates and political tensions globally, including the war in Gaza. Ongoing global tensions risk disrupting trade and increasing prices of energy and other goods. The growth rate of China, the world’s second largest economy, is estimated to be 4.6 percent in 2024 and 4.1 percent next year. Whereas its growth rate in 2023 was 5.2 percent. At the same time, the growth rate of Japan, the world’s fourth largest economy, is likely to be 0.9 percent in 2024, which was 1.9 percent last year. The euro zone’s growth rate is estimated to be 0.8 percent this year, which is double the growth rate in 2023. Britain’s economic growth rate is projected to be 0.5 percent in 2024 and 1.5 percent next year, up from 0.1 percent in 2023.
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