The global economy is more resilient than previously, said IMF recently when unveiling its latest World Economic Outlook.
The IMF expects global growth of 3% in both 2023 and 2024, while raising its 2023 projections by 0.2 percentage points from its previous estimate three months ago, according to its World Economic Outlook report.
“Global economic activity has proven resilient in the first quarter of 2023 but global growth remains weak by historical standards,” said IMF chief economist Pierre-Olivier Gourinchas.
The current growth projections of 3% stay below what was achieved pre-pandemic, according to IMF, pointing out that annual global economic growth averaged 3.8% from 2000 to 2019 and hit 3.5% last year.
Advanced economies continue to serve as the biggest drag on global economic growth, said IMF.
The US economy is estimated to expand by 1.8%, the United Kingdom by 0.4%, and Germany to contract by 0.3%, the fund pointed out.
In addition, there are worries about China’s recovery being slowed further due to its debt-ridden real estate sector, IMF noted.
And there’s also concern that “geoeconomic fragmentation” — where geopolitical ideals could shift economic powers away from globalisation and toward a more nationalistic and fractured approach — could disrupt trade, the cross-border movements of money and people and commodity prices, IMF added.
