When it comes to the direction of the global economy, this year has aptly shown solidity. However, the economic activity still falls short of pre-pandemic levels, according to the latest World Economic Outlook report. What it has meant to speak out indicates by what it has taken on and why it stands to be straight, at least a little, and this is why one should not dismiss the findings and why is there nothing one-sided with being unjust if one dares to say there is a past behind all the information.
The International Monetary Fund has retained the forecast for global growth this year but in the same vein reworked it saying that the world economy is in the direction of recovery, however, growth remains slow and uneven. Although, the economic activity this year still falls short of its pre-pandemic path, especially in emerging markets and developing economies. There is more divergence within the regions in terms of the pace of recovery, said the Washington-based IMF in its latest World Economic Outlook report.
Although the IMF has maintained its by far international economic growth prediction for the ongoing year at 3 per cent, slower than the 3.5 per cent expansion recorded in the year 2022, staying below the historical growth average. Growth has been revised up for emerging economies such as Brazil, Russia and Mexico among others while that for the United States is flung at 0.3% points higher at 2.1% in the year 2023. The upward revisions compensate for the cut in China’s growth forecast to 5% in 2023 from 5.2% gauged earlier.
After a strong initial rebound from the depths of the COVID-19 pandemic, the pace of recovery has moderated, the IMF said, flagging widening growth divergences across regions. Of course, the thorough research has paired these facts with quite an optimistic insight.
For the year 2024, the IMF expects the global gross domestic product to augment by 2.9 per cent, a 0.1 percentage point downgrade for next year from the IMF’s forecast made in July.
Pierre-Olivier Gourinchas, director of research at the IMF said: “In retrospect, the resilience has been remarkable. Despite war-disrupted energy and food markets and unprecedented monetary tightening to combat decades-high inflation, economic activity has slowed but not stalled,” adding that “Even so, growth remains slow and uneven, with widening divergences. The global economy is limping along, not sprinting.”