IMF Upgrades Global Economic Outlook Despite Lingering Threats

The International Monetary Fund (IMF) has upgraded its global growth forecast for 2023, indicating signs of resilience in the global economy despite lingering inflation and a sluggish recovery in China. The IMF raised its forecast for global growth to 3 percent and predicted a decrease in global inflation. Financial markets have stabilized, and the US government's borrowing cap has been lifted, reducing financial risks. However, the IMF warned that serious risks remain, and central banks should focus on restoring price stability and strengthening financial supervision. The US is expected to experience slower growth, while the euro area faces challenges in slowing down inflation. The IMF also highlighted the weaker-than-expected recovery in China as a factor weighing on global output. The ongoing war in Ukraine and geopolitical tensions pose threats to the world economy.