Global growth is projected to be in line with the April 2024 World Economic Outlook (WEO) forecast, at 3.2% in 2024 and 3.3% in 2025.
That's according to the IMF's latest World Economic Outlook report. The IMF's latest World Economic Outlook report projected global growth at 3.2% in 2024 and 3.
3% in 2025, in line with April predictions. The group nonetheless noted that varied momentum in activity at the turn of the year has somewhat narrowed the output divergence, meaning differences in growth rates between economies are now smaller. In terms of the disinflation process, the report noted that risks which drive prices higher have increased, "raising the prospect of higher-for-even-longer interest rates".
One such risk is escalating trade tensions, which can increase the cost of imported goods along the supply chain. Petya Koeva Brooks, Deputy Director in the Research Department of the International Monetary Fund, discussed this trend further in an interview with Euronews. "The other interesting phenomenon that we see is that there is growing evidence of fragmentation in trade.
What we find is that the trade within politically close blocs has held up well and has compensated for the fact that trade between blocs has actually decreased." These warnings come despite the fact that trade proved robust at the start of the year, spurred by strong exports from Asia - particularly in the technology sector. On tariffs recently imposed on Chinese goods by the US and the EU, Koeva Brooks .