Global economic growth has been estimated at 3.2 percent in 2023 and is projected to continue at the same pace in 2024 and 2025, according to the World Economic Outlook report published by the International Monetary Fund (IMF). The growth projection for 2024 has been upgraded by 0.1 percentage point to 3.2 percent compared to the expectation in the January 2023 report, while growth is predicted at 3.1 percent for 2025. Nevertheless, the projection for global growth in 2024 and 2025 is below the historical (2000-2019) annual average of 3.8 percent, reflecting restrictive monetary policies and the withdrawal of fiscal support and the ongoing effects from the pandemic and Russia’s invasion of Ukraine.
The IMF stated in the report that advanced economies are expected to see growth rise slightly, while developing economies are anticipated to experience stable growth through 2024 and 2025, with regional differences. For advanced economies, growth is projected to rise from 1.6 percent in 2023 to 1.7 percent in 2024 and 1.8 percent in 2025. Meanwhile, in developing economies, the growth outlook is stable at 4.2 percent for 2024 and 2025.
The IMF added that global inflation is expected to fall from an annual average of 6.8 percent in 2023 to 5.9 percent in 2024 and 4.5 percent in 2025, with advanced economies returning to their inflation targets sooner than developing economies.