World Economic Outlook Update, July 2024: The Global Economy in a Sticky Spot
Global growth broadly unchanged amid persistent services inflation
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Volume/Issue:
Volume 2024
Issue 004
Publication date: July 2024
ISBN: 9798400278419
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Topics covered in this book
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Economics- Macroeconomics , International - Economics , growth , disinflation , financial conditions , world economic outlook , risks
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Summary
Global growth is projected to be in line with the April 2024 World Economic Outlook (WEO) forecast, at 3.2 percent in 2024 and 3.3 percent in 2025. Services inflation is holding up progress on disinflation, which is complicating monetary policy normalization. Upside risks to inflation have thus increased, raising the prospect of higher for even longer interest rates, in the context of escalating trade tensions and increased policy uncertainty. The policy mix should thus be sequenced carefully to achieve price stability and replenish diminished buffers.
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