10/22/2024

IMF Lifts U.S. Growth Forecast but Marks Down China

Wars, new trade conflicts pose threat to global economy

On Tuesday, the International Monetary Fund (IMF) raised its 2024 economic growth forecasts for the U.S., Brazil and Britain but cut them for China, Japan and the euro zone, adding that risks abound from armed conflicts, potential new trade wars and the hangover from tight monetary policy.

The IMF's latest World Economic Outlook said the shifts will leave 2024 global GDP growth unchanged from the 3.2 percent projected in July, setting a lackluster tone for growth as world finance leaders gather in Washington this week for the IMF and World Bank annual meetings.

Global growth is projected to be 3.2 percent in 2025, one-tenth of a percentage point lower than forecast in July, while medium-term growth is expected to fade to a "mediocre" 3.1 percent in five years, well below its pre-pandemic trend, the report showed.

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