The International Monetary Fund (IMF) has raised concerns about high inflation rates and has urged central banks worldwide to maintain tight monetary policies until inflation is reduced. The IMF has revised its global inflation forecast for 2024 to 5.8%, higher than the previous estimate of 5.2%. The fund predicts that inflation will continue to surpass central bank targets in most countries until 2025. This comes amid global uncertainty, including the Israel-Hamas war and tensions in the Middle East. Central banks in major economies have been raising interest rates to combat inflation, with the global inflation rate reaching 8.7% in 2022. The IMF chief economist emphasized the need for tight monetary policies until inflation is durably reduced. The IMF forecasts a global growth rate of 2.9% for 2024, slightly lower than its previous estimate. The IMF believes that central banks can control inflation without pushing the world into a recession. Factors driving global inflation include the negative market impact of the pandemic, the conflict in Ukraine, the fragmentation of the global economy, and tightening central bank policies. The IMF’s country-specific projections show an upward revision for the United States, with projected growth rates of 2.1% for this year and 1.5% for next year. China’s growth outlook has been reduced due to declining investments in real estate and falling housing prices. The euro area’s growth projection has also been cut. Japan’s economy is expected to grow by 2% this year, while the UK’s growth projection for next year has been reduced to 0.6%. The IMF has raised concerns about the fragmentation of the global economy into geopolitical blocs, which is adversely affecting global trade.
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| Information | Details |
|---|---|
| Geography | Global |
| Countries | 🇯🇵 🇮🇱 🇺🇸 🇺🇦 🇨🇳 🇺🇸 🇨🇳 |
| Sentiment | neutral |
| Relevance Score | 0 |
| People | Pierre-Olivier Gourinchas |
| Companies | International Monetary Fund (IMF), Ukraine, CoinChapter.com, Israel-Hamas war, United States, US, Russia, European Union, China, euro area |
| Currencies | None Trading |
| Securities | None |
