The International Monetary Fund predicts 3.1% global growth in 2024, matching the growth seen last year but falling short of the 3.8% seen from 2000-2019. In 2025, global GDP is expected to reach 3.2%.
Growth this year will be driven by strong consumption, IMF says, adding that it could rise even higher than predicted if disinflation occurs more quickly than expected, China recovers more quickly than expected, economies are bolstered by fiscal policies and AI increases productivity.
Factors that could limit growth include geopolitical incidents raising commodity prices and driving inflation.
Lawmakers should act to both lower inflation and gradually end certain fiscal support that began during the Covid-19 pandemic, the IMF urges. Meanwhile, they should improve resilience and aim for debt sustainability.
