Global Growth Projected at 3.1% in 2024 – IMF’s World Economic Outlook Report Reveals

The International Monetary Fund (IMF) has revealed in its latest World Economic Outlook (WEO) Update Report for January 2024 that global growth is projected at 3.1% in 2024 and 3.2% in 2025. This forecast is 0.2 percentage points higher than the October projections of the 2023 WEO.

The report highlights greater-than-expected resilience in the United States and several large emerging market and developing economies, as well as fiscal support in China, as contributing factors to the increased forecast for 2024. However, it notes that the forecast for 2024–25 remains below the historical average of 3.8% due to factors such as elevated central bank policy rates, withdrawal of fiscal support, and low underlying productivity growth.

Sub-Saharan Africa is expected to experience growth rates of 3.8% in 2024 and 4.1% in 2025, with Nigeria’s economic growth projected at 3.0% in 2024 and 3.1% in 2025.

Inflation is falling faster than expected in most regions, according to the report, with global headline inflation expected to decrease to 5.8% in 2024 and 4.4% in 2025. However, risks to global growth remain balanced, with potential upside from faster disinflation and downside from new commodity price spikes or geopolitical shocks.

Policymakers are urged to manage inflation descent to target while focusing on fiscal consolidation to rebuild budgetary capacity and raise revenue for new spending priorities. Targeted structural reforms are also recommended to reinforce productivity growth and debt sustainability.

The report emphasizes the importance of efficient multilateral coordination for debt resolution and mitigation of climate change effects.