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The International Monetary Fund (IMF) has forecasted in its World Economic Outlook for 2024 that the world economy will grow by 3.2%. This is an upward revision from their previous forecast and is due to the strong economic performance of the United States and promising growth prospects for India. Despite this positive outlook, the IMF has stated that its long-term forecast is the lowest it has been in decades.
According to the IMF, China’s economic growth is expected to decline this year, and much of Europe will have a slower economic recovery compared to the United States. The IMF has also noted that there is only a 10% chance of a global recession, defined as global growth falling below 2%. Factors contributing to this less optimistic long-term forecast include weak productivity growth and increasing geopolitical fragmentation worldwide.
The United States is expected to see economic growth of 2.7% this year, which is an upward revision from the IMF’s earlier projection. The country has experienced a strong rebound, supported by rising productivity growth. In contrast, China’s growth is projected to decline to 4.6% this year from 5.2% last year. The IMF has also raised India’s growth prospects to 6.8%, showing a positive outlook for the country’s economy.