IMF raises 2023 growth estimates, predicts easing inflation

By Scott Kanowsky

Investing.com -- The International Monetary Fund has lifted its growth projections for the world economy this year, citing the positive impact from the recovery of China's economy from strict COVID-19 measures and signs of easing inflation pressures.

In a report, the IMF said it now expects global growth will slow to 2.9% in 2023 from 3.4% in 2022. The organization had previously estimated in October that expansion this year would come in at 2.7% and warned that the world economy could slip into a recession.

Global growth in 2024 is also seen at 3.1%. However, this is a tenth of a percentage point below its prior forecast.

IMF chief economist Pierre-Olivier Gourinchas said in a statement that the world economy has proven "surprisingly resilient" thanks to strong labor markets, household consumption, and a better-than-expected adaptation to the energy crisis in Europe.