Global growth steady at 3.1% in 2024- IMF

Date:

January 31, 2024.

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Azonuchechi Chukwu.

The International Monetary (IMF) says global growth is projected at 3.1 per cent in 2024 and 3.2 per cent in 2025.

This is according to the IMF’s latest World Economic Outlook (WEO) Update Report for January 2024: “Moderating Inflation and Steady Growth Open Path to Soft Landing” released on Tuesday in South Africa.

The report said the 2024 forecast was 0.2 percentage points higher than the October projections of the 2023 WEO.

It said this was on account of greater-than-expected resilience in the United States and several large emerging market and developing economies, as well as fiscal support in China.

“The forecast for 2024–25 is, however, below the historical (2000–19) average of 3.8 per cent.

“With elevated central bank policy rates to fight inflation, a withdrawal of fiscal support amid high debt weighing on economic activity, and low underlying productivity growth.”

The report showed growth in Sub-Saharan Africa was projected at 3.8 in 2024 and 4.1 in 2025.

It revealed that economic growth in Nigeria is projected at 3.0 in 2024 and 3.1 in 2025.

The report said inflation was falling faster than expected in most regions, amid unwinding supply-side issues and restrictive monetary policy.

It said global headline inflation was expected to fall to 5.8 per cent in 2024 and to 4.4 per cent in 2025, with the 2025 forecast revised down.

The report said with disinflation and steady growth, the likelihood of a hard landing had receded, and risks to global growth were broadly balanced.

“On the upside, faster disinflation could lead to further easing of financial conditions.

“Looser fiscal policy than necessary and than assumed in the projections could imply temporarily higher growth, but at the risk of a more costly adjustment later on.

” On the downside, new commodity price spikes from geopolitical shocks including continued attacks in the Red Sea and supply disruptions or more persistent underlying inflation could prolong tight monetary conditions.

” Deepening property sector woes in China or, elsewhere, a disruptive turn to tax hikes and spending cuts could also cause growth disappointments.”

The report stated that policymakers’ near-term challenge was to successfully manage the final descent of inflation to target, calibrating monetary policy in response to underlying inflation dynamics.

“At the same time, in many cases, with inflation declining and economies better able to absorb effects of fiscal tightening, a renewed focus on fiscal consolidation to rebuild budgetary capacity to deal with future shocks is needed.

“There is also the need to raise revenue for new spending priorities and curb the rise of public debt.

“Targeted and carefully sequenced structural reforms would reinforce productivity growth and debt sustainability and accelerate convergence toward higher income levels.

“More efficient multilateral coordination is needed for, among other things, debt resolution, to avoid debt distress and create space for necessary investments, as well as to mitigate the effects of climate change.”(www.naija247news.com).

Azonuchechi Chukwu
Azonuchechi Chukwuhttps://gravatar.com/azonuchechivchukwu
Azonuchechi Chukwu - Business Journalist at Naija247news.com Azonuchechi Chukwu is a seasoned business journalist contributing to the insightful coverage of economic and financial news at Naija247news.com. With a passion for unraveling the complexities of the business world, Azonuchechi brings a wealth of expertise and dedication to his role. As a Business Journalist, Azonuchechi specializes in providing comprehensive analyses of market trends, corporate developments, and economic indicators. His in-depth reports offer Naija247news.com readers a nuanced understanding of the forces shaping the Nigerian and global business landscapes. Azonuchechi Chukwu's commitment to journalistic excellence is evident in his ability to translate complex financial information into accessible and engaging narratives. Whether exploring stock market fluctuations, corporate strategies, or economic policies, he strives to deliver content that empowers readers with valuable insights. With an educational background in business and a keen interest in the intersection of finance and technology, Azonuchechi stays at the forefront of industry dynamics. His coverage extends beyond traditional financial reporting, encompassing the dynamic realms of fintech, entrepreneurship, and sustainable business practices. Azonuchechi Chukwu's work goes beyond the surface, aiming to foster financial literacy and awareness among Naija247news.com's audience. By demystifying economic complexities and shedding light on emerging opportunities, he plays a pivotal role in keeping readers well-informed in the fast-paced world of business. As Naija247news.com's Business Journalist, Azonuchechi Chukwu continues to make meaningful contributions to the platform's mission of delivering timely, accurate, and relevant business news to its diverse audience. His dedication to journalistic integrity and his ability to navigate the intricacies of the business realm make him an invaluable asset to the Naija247news.com team.

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