The International Monetary Fund on Tuesday revised upward its global growth outlook for 2024 to 3.2 percent from its 3.1 percent prediction in January, citing receding inflation and the strong U.S. economy.
Among major economies, U.S. growth is notably robust, with the IMF expecting it to reach 2.7 percent this year, up from 2.1 percent in its previous forecast. For 2025, it was lifted by 0.2 percentage point to 1.9 percent.
The IMF said in its World Economic Outlook report that consumer prices are now under control in many countries, declining toward targets from their mid-2022 peak. Compared with an annual average of 6.8 percent in 2023, it said global inflation is expected to fall to 5.9 percent in 2024 and 4.5 percent in 2025.
"The global economy remains remarkably resilient, with growth holding steady as inflation returns to target," said the report, released before finance chiefs from around the world gather in Washington for the annual spring meetings of the IMF and the World Bank.
Global growth in 2025 is projected to be 3.2 percent, unchanged from the previous forecast.
However, the IMF said the pace of growth expansion is low by historical standards and there are downside risks, including the Israel-Hamas war and other geopolitical tensions, China's mishandling of its crumbling property sector and adverse effects stemming from high interest rates.
China's growth is forecast to be 4.6 percent in 2024 and 4.1 percent the following year, the same levels projected three months ago by the Washington-headquartered institution.
"Without a comprehensive response to the troubled property sector, growth could falter, hurting trading partners," the report said of China.
Japan's growth forecast for this year was unchanged at 0.9 percent, but it was increased to 1.0 percent for 2025, up from the 0.8 percent previously estimated.
Meanwhile, growth in the euro area was revised lower, with 0.8 percent likely in 2024 and 1.5 percent in 2025, down 0.1 point and 0.2 point from the previous projections, respectively.
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