BS EDIT: The global economy faces several risks

By Business StandardPublished On Oct 23, 2024

IMF's World Economic Outlook

The IMF’s latest World Economic Outlook (WEO) projects global growth at 3.2% for 2024, while lowering the 2025 forecast slightly

Inflation: The battle is almost won

The IMF reports that inflation is largely under control, and central banks are now cutting policy rates, easing financial conditions to boost global economic activity

Debt stability: A growing concern

Stabilising public debt remains a key challenge, as rising deficits in the US and China pose risks of market disruptions, warns the IMF, urging timely fiscal adjustments

China’s property market

China’s property market woes pose a potential downside risk for the global economy.

A deeper crisis could trigger a spillover effect, leading to broader economic disruptions both within China and globally

Geopolitical Tensions

Geopolitical tensions, especially in West Asia, are emerging as the most immediate risk.

Any escalation could disrupt supply chains and push up global commodity prices, creating further economic challenges

Policy buffers needed

India's growth remains stable at 7% for 2024, but with global risks ahead, it must build fiscal buffers and ensure policy clarity to manage future shocks and maintain resilience