Tighter central-bank policy to fight inflation and public-spending cuts in some countries are among the reasons why growth is expected to be slower than in the two decades before the pandemic, when it averaged 3.8%. Still, given the scale of the Covid-19 price shocks and the interest-rate hikes that followed, the IMF suggested things could have gone much worse.
The International Monetary Fund raised its forecast for global growth this year on better-than-expected expansion in the US and fiscal stimulus in China, while warning of risks from wars and inflation.
The world economy will grow 3.1% this year, up from 2.9% seen in October, the Washington-based institution said in its quarterly World Economic Outlook on Tuesday. The fund kept its 2025 forecast unchanged at 3.2%.
