IMF Raises Forecast for Global Economic Growth to 2.9% in 2023

The International Monetary Fund (IMF) increased its forecast for global economic growth to 2.9% in 2023, from 2.7% expected in October, which represents a decline from the 3.4% achieved in 2022.

The Fund stated - in its update of the Global Economic Growth Outlook report issued today, Tuesday - that China's reopening of its economy and its abandonment of zero COVID policy measures paved the way for a faster-than-expected recovery, from the 3% expected last October.

The IMF expected the global inflation rate recorded in 2022 to decline from 8.8% to 6.6% in 2023 and 4.3% in 2024, which is higher than the pre-Covid levels recorded between 2017 and 2019 at 3.5%.

The Fund saw the beginning of the fruits of tightening monetary policies in the major central banks around the world, as it became clear that demand and inflation had declined.

But, at the same time, it ruled out that the full effect of monetary policy would be achieved before 2024.