IMF Cuts Growth Forecasts for China, Euro Area, and UK; Warns of Stubborn Inflation and Weaker Global Growth

The International Monetary Fund (IMF) has lowered its growth forecasts for China and the euro area, citing low and uneven global growth despite the strength of the US economy. The IMF maintained its global growth forecast for 2023 at 3.0% but reduced its 2024 forecast to 2.9%. The IMF expressed concerns about risks such as the real estate crisis in China, volatile commodity prices, geopolitical fragmentation, and a resurgence in inflation. Inflation is expected to decline, but the IMF warned against easing interest rates too soon. The IMF raised its growth forecast for the US, while cutting estimates for China and the euro area.