Buildings in Pudong’s Lujiazui Financial District in Shanghai, China, on Monday, Jan. 29, 2024. Bloomberg | Bloomberg | Getty ImagesThe International Monetary Fund on Tuesday nudged its global growth forecast higher, citing the unexpected strength of the U.S. economy and fiscal support measures in China.It now sees global growth in 2024 at 3.1%, up 0.2 percentage points from its prior October projection, followed by 3.2% expansion in 2025.Large emerging market economies including Brazil, India and Russia have also performed better than previously thought.The IMF believes there is now a reduced likelihood of a so-called “hard landing,” an economic contraction following a period of strong growth, despite new risks from commodity price spikes and supply chain issues due to geopolitical volatility in the Middle East.It forecasts growth this year of 2.1% in the U.S., 0.9% in both the euro zone and Japan, and 0.6% in the United Kingdom.”What we’ve seen is a very resilient global economy in the second half of last year, and that’s going to carry over into 2024,” the IMF’s chief economist, Pierre-Olivier Gourinchas, told CNBC’s Karen Tso on Tuesday.”This is a combination of strong demand in some of these countries, private consumption, government spending. But also, and this is quite important in the current context, a supply component as well … So very strong labor markets, supply chain frictions that have been easing, and the decline in energy and commodity prices.”The latest official figures showed the U.S. economy tearing past economists’ expectations in the fourth quarter, with growth of 3.3%.China has faced a host of issues over the last year, including a disappointing rebound in post-pandemic spending, concerns over deflation and an ongoing property sector crisis. The government has rolled out a host of stimulus measures in response, contributing to the IMF’s upgrade.However, the IMF’s forecasts remain below the global growth ave …
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[mwai_chat context=”Let’s have a discussion about this article:nnBuildings in Pudong’s Lujiazui Financial District in Shanghai, China, on Monday, Jan. 29, 2024. Bloomberg | Bloomberg | Getty ImagesThe International Monetary Fund on Tuesday nudged its global growth forecast higher, citing the unexpected strength of the U.S. economy and fiscal support measures in China.It now sees global growth in 2024 at 3.1%, up 0.2 percentage points from its prior October projection, followed by 3.2% expansion in 2025.Large emerging market economies including Brazil, India and Russia have also performed better than previously thought.The IMF believes there is now a reduced likelihood of a so-called “hard landing,” an economic contraction following a period of strong growth, despite new risks from commodity price spikes and supply chain issues due to geopolitical volatility in the Middle East.It forecasts growth this year of 2.1% in the U.S., 0.9% in both the euro zone and Japan, and 0.6% in the United Kingdom.”What we’ve seen is a very resilient global economy in the second half of last year, and that’s going to carry over into 2024,” the IMF’s chief economist, Pierre-Olivier Gourinchas, told CNBC’s Karen Tso on Tuesday.”This is a combination of strong demand in some of these countries, private consumption, government spending. But also, and this is quite important in the current context, a supply component as well … So very strong labor markets, supply chain frictions that have been easing, and the decline in energy and commodity prices.”The latest official figures showed the U.S. economy tearing past economists’ expectations in the fourth quarter, with growth of 3.3%.China has faced a host of issues over the last year, including a disappointing rebound in post-pandemic spending, concerns over deflation and an ongoing property sector crisis. The government has rolled out a host of stimulus measures in response, contributing to the IMF’s upgrade.However, the IMF’s forecasts remain below the global growth ave …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]
