IMF Forecasts Sluggish Global Economic Growth for 2024

IMF projects slower global growth in 2024 due to geopolitical tensions, supply chain issues, and lingering COVID-19 impacts. Calls for accelerated vaccine distribution and targeted fiscal support to enable a sustainable, equitable recovery.

Israel Ojoko
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IMF Forecasts Sluggish Global Economic Growth for 2024

IMF Forecasts Sluggish Global Economic Growth for 2024

The International Monetary Fund (IMF) has released its latest global economic outlook report for 2024, projecting a slowdown in worldwide economic growth. The report highlights various factors contributing to the sluggish growth forecast, including ongoing geopolitical tensions, supply chain disruptions, and the lingering effects of the COVID-19 pandemic.

According to the IMF, the global economy is expected to grow by a modest 3.2% in 2024, a notable decrease from the 5.9% growth recorded in 2021. The report emphasizes that while the world economy has shown resilience in the face of recent challenges, the recovery remains uneven across regions and sectors.

Advanced economies are projected to experience a more subdued growth rate of 2.4% in 2024, compared to the 5.2% growth seen in 2021. The IMF attributes this slowdown to the gradual withdrawal of fiscal support measures and the normalization of monetary policies in these countries. The report also highlights the potential risks posed by rising inflation and the accumulation of public debt in some advanced economies.

Emerging market and developing economies are expected to fare slightly better, with a projected growth rate of 4.4% in 2024. However, this growth remains below pre-pandemic levels and is subject to significant downside risks. The IMF warns that many of these economies face challenges such as limited access to vaccines, weak healthcare systems, and vulnerability to external shocks.

Why this matters: The IMF's global economic outlook has far-reaching implications for policymakers, businesses, and individuals worldwide. The slow growth prediction emphasizes the importance of ongoing global cooperation and focused policy actions to enable a long-lasting and equitable recovery.

The report emphasizes the importance of accelerating vaccine distribution, particularly in low-income countries, to prevent further economic divergence. It also calls for targeted fiscal support to vulnerable households and businesses, as well as structural reforms to boost productivity and promote long-term growth.

IMF Chief Economist Gita Gopinath stated, "The global recovery continues, but the momentum has weakened, and uncertainty has increased. The priority remains to vaccinate the world, calibrate policies to the pandemic and economic developments, and accelerate reforms to build sustainable and inclusive economies."

Key Takeaways

  • IMF projects global economic growth to slow to 3.2% in 2024 from 5.9% in 2021.
  • Advanced economies to see 2.4% growth in 2024, down from 5.2% in 2021.
  • Emerging markets to grow 4.4% in 2024, still below pre-pandemic levels.
  • Risks include geopolitical tensions, supply chain disruptions, and lingering COVID-19 effects.
  • IMF calls for vaccine distribution, targeted fiscal support, and structural reforms.