The International Monetary Fund (IMF) has slightly adjusted upwards its forecast for world economic growth to 3.3% in 2025, while warning of the risks of high inflation keeping interest rates high for longer. The information was published on Tuesday, July 16, by Notícias ao Minuto.
According to the IMF, the global economic growth forecast for this year remains at 3.2%, according to the updated World Economic Outlook report released today.
The financial institution points out that the persistence of high prices in services makes it difficult to normalize monetary policy, especially when the US Federal Reserve has yet to cut interest rates, unlike the European Central Bank.
“The upside risks to inflation have increased, thus raising the prospect of higher interest rates for an even longer period of time, in the context of rising trade tensions and growing political uncertainty,” the institution said in a statement.
To manage these risks and preserve growth, the IMF recommends a carefully sequenced policy mix to achieve price stability and restore diminished buffers.
The IMF report indicates that economic activity is evolving in different ways among the major economies: in the first quarter of the year, there were negative surprises in the United States and Japan, while in Europe and China there were some signs of recovery.
The IMF’s forecast for the US economy in 2024 is for growth of 2.6%, a downward revision compared to April’s figures, while the forecast for the Eurozone remains at 0.9%.
