IMF raises global economic growth forecast

The International Monetary Fund (IMF) has raised its global economic growth forecast for this year from 2.9 percent to 3.1 percent, citing greater-than-expected resilience in the US and several major emerging economies, as well as the impact of fiscal support in China.

According to the IMF's World Economic Outlook Report, titled "Steady Growth and Declining Inflation Pave the Way for a Soft Landing," the global economy grew by 3.1 percent last year, and is expected to grow by 3.1 percent this year as well. The growth estimate for 2023 is 3.2 percent.

The growth forecast for the US economy this year has been raised to 2.1 percent, but it has been revised to 1.7 percent for 2025. Growth forecasts for the Eurozone have been lowered to 0.9 percent for this year and 1.7 percent for 2025.

While the growth forecast for the Chinese economy was raised to 4.6 percent for this year, it was maintained at 4.1 percent for 2023. Turkey's growth forecasts were set at 3.1 percent for this year and 3.2 percent for next year.

The report warns that while the probability of a "hard landing" in the global economy has decreased due to falling inflation and steady growth, increases in commodity prices due to geopolitical shocks could extend the duration of tight monetary conditions.