IMF Sees Global Economy Staying 'Resilient' But Growing Too Slowly In 2024

• According to the International Monetary Fund (IMF), global economic growth will remain "resilient" this year after a stronger-than-expected 2023, but work is needed to boost global growth rates above an anemic 3% range in the medium term.
• IMF spokesperson Julie Kozack explained that the global economy appeared headed for a "soft landing" with inflation subsiding and labour markets resilient, but low-income countries could still fall further behind.
• Kozack said dire predictions of recessions in many regions that were prevalent a year ago did not materialize in 2023. "So we've had a relatively resilient global economy so far. We expect that resilience to continue into 2024," Kozack said, noting that inflation was coming down.
• However, the news is "not all good" because recent and near-term growth of about 3% is lower than previous pre-COVID global average growth rates of around 3.8%. "So we do have work to do to lift global growth, especially over the medium term," she noted, adding that the situation pointed to the need for sound policies and reforms that could raise productivity.
• Asked if the economic resilience in 2024 would spread beyond the United States, Kozack said there is a divergence of fortunes among countries and regions, with a risk that low-income countries could fall further behind. "Low-income countries are having the hardest time recovering from a series of shocks, including the pandemic, the food and oil price shocks," as such, the Fund’s work in 2024 will have a strong focus on helping its most vulnerable member countries.

(Source: Reuters)