Posted 1/30/2024, 6:09:00 PM
IMF Upgrades Global Growth Outlook But Warns of Middle East, Inflation Risks
- IMF upgrades 2023 global GDP growth forecast to 3.1% but warns risks remain like Middle East tensions, shipping disruptions, and persistent core inflation
- U.S. economy forecast to grow 2.1% in 2023 and 1.7% in 2024 as consumer spending slows
- Attacks by Iran-backed Houthis in Red Sea rerouting ships around Africa, causing shipping costs and delivery times to rise
- Markets seen as "excessively optimistic" about prospects for interest rate cuts by central banks
- Faster fiscal consolidation could be needed if investors reassess views on rate cuts, weighing on growth