IMF Raises Global Growth Forecast to 3%, Seeing Recovery in Economy but Warns of Challenges Ahead

The International Monetary Fund (IMF) slightly raised its 2023 global growth estimates as US and UK prospects improved, but still warned of persistent challenges. 

In the latest World Economic Outlook published on Tuesday, IMF stated that inflation is easing in most countries but remains high, with divergences across economies and inflation measures. Meanwhile, acute stress in the banking sector has receded, but credit availability is tight.

IMF raised global growth estimate for 2023 by 0.2 percentage point from its earlier forecast in April to 3.0%. The U.S. growth this year is expected at 1.8% vs 1.6% in April. However, 2024 growth has been revised down slightly to 1.0% vs 1.1% in the earlier forecast. 

Outlook for China this year remains intact at 5.2% and 4.5% in 2024. Meanwhile, forecast for Eurozone has also been revised up by 0.1 percentage point to 0.9% in 2023 and 1.5% in 2024.

 In addition, IMF noted that the U.S. Federal Reserve and the Bank of England are expected to raise interest rates by more than predict in April, before cutting them in 2024.


Global growth remains tilted to the downward, but adverse risks have receded since the publication of the April 2023 outlook, according to the IMF.