The world economy will have more momentum in 2024

"The global economy has proven to be remarkably resilient. 2023 is going to be a little better than we expected. That momentum will carry over from 2023 through 2024," Kristalina Georgieva, managing director of the International Monetary Fund (IMF), said at a Bloomberg House event in Davos on January 16.

Ms. Georgieva's forecast is more positive than the IMF's view last October, when it said global growth would slow to 3% in 2023 and further decline to 2.9% in 2024, well below the 20-year average of 3.8%.

According to the IMF, factors hindering the recovery are the lingering consequences of the Covid-19 pandemic, the Russia-Ukraine conflict, the widening gap between economies, as well as the impact of the wave of tightening monetary policy and extreme weather events.

The IMF chief did not say how the IMF would adjust its forecasts at the end of January but indicated that the US economy was “poised for a soft landing” as interest rates began to fall.

Meanwhile, Ms Georgieva warned that the world's second-largest economy, China, faces growth below 4% unless it carries out structural reforms.

Last week, the World Bank also predicted that global GDP growth in 2024 will continue to slow to 2.4%, making it difficult for governments to achieve poverty reduction goals.

Minh Hoa (according to Tin Tuc Newspaper, Dan Tri)

Source