(VOVWORLD) - The International Monetary Fund (IMF) on Tuesday upgraded its global growth forecast to 3.1% this year, according to its newly released World Economic Outlook update.
 The IMF’s logo in Washington DC, the US. (Photo: AFP/VNA) |
The IMF attributed the upward revision to the surprise recovery of emerging markets and developed economies like China and the United States.
The new IMF forecast is 0.2 percentage point higher than last October’s projection.
IMF Chief Economist Pierre-Olivier Gourinchas warned that, while the chance of a soft landing has increased, the pace of expansion remains low.
"The global economy continues to display remarkable resilience, with inflation declining steadily and growth holding up. The chance of a 'soft landing' has increased," Gourinchas told reporters in Johannesburg, adding, "We are very far from a global recession scenario."
But he cautioned that the base of expansion was slow and risks remained, including geopolitical tensions in the Middle East and attacks in the Red Sea that could disrupt commodity prices and supply chains.
According to the IMF, this new forecast is still well below the 2000-2019 average growth of 3.8%.
Among the Group of 7 economies, growth of the European countries remains weak while Japan and Canada are expected to grow faster.
Growth in China is projected to be 4.6% this year, an upward revision of 0.4 percentage points. US growth is projected to be 2.1% this year, dropping slightly from last year’s 2.5%.
India continues to be the bright spot in the global economy. The IMF forecasts that India’s economy will grow 6.5% in 2024, up 0.2 percentage points from the previous forecast. The IMF also revised growth prospects upward for Russia, Iran, and Brazil.