IMF chief warns of 'unforgiving' debt backdrop and low growth

International Monetary Fund (IMF)

18 hours ago

How To Do Better

IMF Chief Warns that World Risks Falling into Slow-Growth Rut

The IMF forecasts that the global economy will expand this year at an “anemic'' 3.2%. . .Next year the figure is lower

In its latest World Economic Outlook report, issued Tuesday, the fund forecast that the once high-flying Chinese economy would grow just 4.8% this year and 4.5% in 2025, down from 5.2% in 2023.

Paul Wiseman
Oct 25, 2024

Industrial Distribution

17 hours ago

IMF Chief Warns that World Risks Falling into Slow-Growth Rut | Industrial Distribution

WASHINGTON (AP) ---- "These are anxious times,'' the fund's managing director, Kristalina Georgieva, told reporters during the fall meetings of the IMF and its sister agency, the World Bank...
Global trade is lackluster at a time of conflict and growing geopolitical tension — including frosty relations the world's two largest economies, the United States and China.

"Trade is no more a powerful engine of growth,'' she said.

"We live in a more fragmented global economy.'

The IMF expects government debts worldwide to to top $100 trillion this year. That would equal to 93% of global economic output — a share that is expected to approach 100% by 2030. . .

In wealthy countries, the fund expects inflation to drop next year to the 2% sought by central banks.

And price pressures have eased without sending the world into a recession.
"For most of the world, a soft landing is in sight,'' Georgieva said.

But many people are still struggling with high prices and economic uncertainty. World leaders are telling her that their economies are relatively healthy — but ordinary "people are not feeling good about their economic prospects.''

In its latest World Economic Outlook report, issued Tuesday, the fund forecast that the once high-flying Chinese economy would grow just 4.8% this year and 4.5% in 2025, down from 5.2% in 2023.