IMF Forecasts Soft Landing for Global Economy Amidst Inflation Concerns and Geopolitical Tensions

The International Monetary Fund (IMF) predicts a greater chance of a "soft landing" for the global economy, with central banks expected to manage inflation without causing a recession. While growth remains weak and patchy, the IMF expects the world economy to expand by 3% this year, with stronger-than-expected growth in the United States offsetting downgrades to the outlook for China and Europe. However, risks remain tilted to the downside, and the IMF warns of slower and uneven recoveries in Europe and China. The agency also highlights concerns about high inflation becoming a self-fulfilling prophecy and financial stability risks, including the impact of higher interest rates on the banking sector and declines in home prices.