IMF Sticks to Earlier GDP Projections
IMF Predicts Slower Global Economic Growth, Hungary’s Recession Continues
According to the latest quarterly prognosis released by the International Monetary Fund (IMF), global economic growth is expected to reach 3% this year, remaining the same as the previous forecast. However, the IMF predicts a slower pace of growth at 2.9% next year. The report also reveals that Hungary is currently in recession, with a 0.3% contraction expected this year, followed by a rebound of 3.1% next year.
In its World Economic Outlook (WEO), the IMF maintains its forecast of 3% global GDP growth for 2023, but has slightly lowered its expectations for 2024. This slight adjustment projects a decline of 0.1 percentage points compared to the previous outlook. It is important to note that global GDP grew by 3.5% in the previous year.
The IMF expects growth of 1.5% in advanced economies this year, followed by 1.4% growth next year, with no changes from the July forecast. In the United States, GDP is projected to grow by 2.1% this year, an increase from 2.1% in the previous year and a 0.3 percentage point increase from July. The IMF also anticipates a 1.5% growth rate in GDP for 2024, which is 0.5 percentage points higher than the previous forecast.
Specifically for Hungary, the IMF predicts a 0.3% contraction in GDP this year, followed by a growth of 3.1% next year. This comes after a 4.6% expansion in the previous year.
Additionally, the report states that inflation is expected to be 17.7% this year and 6.6% next year, an increase from 14.5% last year. The unemployment rate is also anticipated to rise to 3.9% this year from 3.6% in the previous year, but is expected to fall to 3.8% next year.
In conclusion, while the IMF maintains its global economic growth forecast for this year, it anticipates a slightly slower pace of growth next year. Hungary’s recession is expected to continue this year, but a rebound is predicted for the following year. Inflation is also expected to rise, while the unemployment rate is projected to fluctuate in the coming years.
