The International Monetary Fund (IMF) has recently released its World Economic Outlook report, indicating that global economic growth is expected to remain strong. According to a discussion with Yahoo Finance reporter Jennifer Schonberger, the IMF predicts that the global economy will grow by 3.2% this year, which is on par with last year’s growth. The chances of a global recession are low, with only a 10% likelihood this year.
One of the key factors driving this forecast is the continued decrease in global inflation. This trend is expected to continue, thanks to factors such as falling core inflation rates, higher interest rates, weakening job markets, and relief from elevated energy prices. However, Schonberger notes that this forecast was made before Iran’s recent air attack on Israel, which could have an impact on global economic stability.
The IMF also expects inflation to lead to global central banks cutting interest rates in the latter half of the year. The Federal Reserve may lower rates three times by the end of 2024 for more information and analysis on this topic and other market updates, be sure to watch the full episode of Yahoo Finance.
In summary, while there are some concerns about potential disruptions from geopolitical events like Iran’s recent air attack on Israel, overall economic conditions look favorable for strong growth in 2024.