International Monetary Fund (IMF) released a new set of growth forecasts for 2023 and 2024 today at 2:00 pm BST. Release saw a number of upward revisions for world's largest economies, especially for 2023. While the Chinese economy is still expected to grow by 5.2%, as was signaled in the April forecast, other major economies are expected to see a slightly higher pace of growth this year than the IMF expected three months ago.
Germany is the only G7 country which is still expected to experience a contraction this year. Back in April, IMF also saw the UK economy contracting but the UK forecast was revised from -0.3 to +0.4% in July!
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Create account Try a demo Download mobile app Download mobile appSome interesting comments were made by IMF Chief Economist Gourinchas in relation to the release. Namely, Gourinchas said that the IMF expects monetary tightening to continue until late-2024 or even into 2025! While those comments and new forecasts are interesting, they barely had any impact on the markets.
2023 GDP forecast
- Global: 3.0% vs 2.8% previously
- United States: 1.8% vs 1.6% previously
- China: 5.2% vs 5.2% previously
- Japan: 1.4% vs 1.3% previously
- India: 6.1% vs 5.9% previously
- Euro area: 0.8% vs 0.7% previously
- Germany: -0.3% vs -0.1% previously
- United Kingdom: 0.4% vs -0.3% previously
2024 GDP forecast
- Global: 3.0% vs 3.0% previously
- United States: 1.0% vs 1.1% previously
- China: 4.5% vs 4.5% previously
- Japan: 1.0% vs 1.0% previously
- India: 6.3% vs 6.3% previously
- Euro area: 1.5% vs 1.4% previously
- United Kingdom: 1.0% vs 1.0% previously
