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The International Monetary Fund (IMF) has revised its economic outlook for China, India, and Europe upward for this year, while slightly lowering expectations for the United States and Japan.
However, the IMF noted that global progress in combating rising prices had been hindered by persistent inflation in the service sector, including airline travel and dining out.
The IMF stated on Tuesday that it maintained its previous forecast of lacklustre 3.2% global economic growth for this year, unchanged from its April projection and a slight decrease from the 3.3% growth in 2023.
Prior to the pandemic, global growth had averaged 3.8% annually from 2000 to 2019.
As a 190-nation lending organisation, the IMF's mission is to foster economic growth, financial stability, and reduce global poverty.
According to the IMF's chief economist, Pierre-Olivier Gourinchas, China and India are expected to contribute to nearly half of the global growth this year.
Due to a surge in Chinese exports at the beginning of 2024, the IMF has raised its growth forecast for China to 5% for this year, up from the 4.6% projected in April but slightly lower than the 5.2% in 2023.
It's worth noting that the IMF's forecast was released before Beijing announced that the Chinese economy grew at a slower-than-expected annual rate of 4.7% from April to June, down from 5.3% in the first quarter of the year.
