The International Monetary Fund (IMF) today warned that the world economy has lost momentum from the effects of higher interest rates, the invasion of Ukraine, and widening geopolitical rifts, and it now faces new uncertainty from the war between Israel and Hamas militants.
The IMF says it expects global economic growth to slow to 2.9 per cent in 2024 from an expected three per cent this year.
The forecast for next year is down a notch from the three per cent it predicted back in July.
The deceleration comes at a time when the world has yet to fully recover from a devastating but short-lived COVID-19 recession in 2020 and now could see fallout from the Middle East conflict — particularly to oil prices.
A series of previous shocks, including the pandemic and Russia's war in Ukraine, has slashed worldwide economic output by about $3.7 trillion over the last three years compared with pre-COVID trends.
The IMF expectation of three per cent growth this year is down from 3.5 per cent in 2022 but unchanged from its July projections.
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