TechFlow news, on October 23, according to Cointelegraph, Pierre-Olivier Gourinchas, Chief Economist of the International Monetary Fund (IMF), released the latest World Economic Outlook report, projecting that global inflation will decline to 3.5% by the end of 2025. However, he also warned of slowing global economic growth and rising inequality.
Gourinchas stated: "The battle against inflation is nearly won. Global inflation, which peaked at 9.4% in the third quarter of 2022, is expected to fall to 3.5% by the end of next year. Inflation in most countries has already approached central bank targets." He added that the global economy remains resilient, with growth rates projected to stabilize at 3.2% for both 2024 and 2025.
Nevertheless, the IMF noted that the global economic growth outlook remains at its "weakest level in decades." The report highlighted uncertainties such as escalating geopolitical tensions in the Middle East and the upcoming U.S. presidential election, which could pose significant risks to commodity markets. The IMF forecasts that the United States will experience the fastest growth, and emerging Asian economies may also achieve strong expansion driven by investments related to artificial intelligence. However, the institution has downgraded growth expectations for other advanced economies and some emerging markets.
