The International Monetary Fund (IMF) announced Tuesday that the global economy is expected to grow by 3.2% in 2024, revising its October prediction up from 2.9%. This optimistic revision is supported by robust economic performances in the U.S. and other major economies like China, Russia, India, and Brazil.
According to IMF Chief Economist Pierre-Olivier Gourinchas, "The global economy remains quite resilient," fueled by stronger-than-anticipated U.S. growth and modest increases in the major developing economies.
However, the IMF warns of a less favorable economic landscape beyond this period, with global growth potentially slowing to 2.8% annually by 2030. This slowdown is attributed to demographic changes, such as aging populations and a declining labor supply, which previously drove economic expansion.
Emerging and low-income countries are particularly at risk, facing not only demographic challenges but also high debt levels and geopolitical tensions. These factors are expected to hinder their economic convergence with wealthier nations—a trend that has stalled post-pandemic due to limited fiscal response capabilities and rising costs for essential goods. Image: IMF, World Economic Outlook, April 2024
