The International Monetary Fund (IMF) has released its semi-annual World Economic Outlook report, signaling a year of slow but steady growth for the global economy. Forecasting a global real GDP growth of 3.2 percent for both 2024 and 2025, the IMF highlights a consistent trajectory similar to the growth rate observed in 2023.
Despite ongoing geopolitical tensions, including trade disputes and regional conflicts, the IMF remains cautiously optimistic. The report emphasizes the importance of cooperation among central bankers, finance ministers, and global leaders, who recently convened in Washington D.C. for the Spring Meetings of the Boards of Governors of the IMF and the World Bank Group. These meetings are pivotal for fostering economic cooperation, policy coordination, and addressing development challenges on a global scale.
A notable highlight from the report is the unchanged forecast for China's growth, projected at 4.6 percent for 2024 and 4.1 percent for 2025. The IMF underscores the necessity for China to implement a restructuring package for its property sector, which includes the exit of non-viable developers and the completion of unfinished housing projects. Additionally, supporting households to restore consumer demand is deemed crucial.
The IMF also acknowledges China's impressive year-on-year GDP growth in the first quarter, which surpassed market expectations. This performance challenges the recurring \"Peak China\" theory and suggests a potential upward revision of growth prospects for the world's second-largest economy in the near future.
Reference(s):
World Economic Outlook: Navigating global challenges with preparedness
cgtn.com
