In upward revision of his forecast for the growth of the Greek economy this year it went ahead International Monetary Fund in his report on the outlook for the world economy released today.

The IMF predicts growth rate 2.6% against the 1.8% he estimated last October, while for 2024 he predicts growth of 1.5% from 1.4%.

The development is predicted to allow its reduction to continue unemployment to 11.2% this year and 10.4% in 2024 from 12.2% in 2022.

For inflation a significant deceleration is forecast from 9.3% at average levels last year, to 4% this year and to 2.9% in 2024.

The IMF also expects a gradual reduction in its deficit current account balance – from 9.7% of GDP last year to 8% this year and 6% in 2024.

The improved forecast for the Greek economy comes amid a shaky recovery in the global economy, for which the Fund notes that growth prospects over the next five years are the lowest in decades.

In particular, its basic scenario provides that the global GDP will grow 2.8% this year and 3% in 2024 compared to 3.4% growth last year. For the Eurozone, it predicts GDP growth of 0.8% this year and 1.4% in 2024 compared to the 0.5% and 1.5% it estimated in October. Inflation in the Eurozone is expected to decrease to 5.3% from 8.4% last year.

Despite the better-than-expected performance of the global economy in the second half of 2022, confidence is down this year compared to the beginning of last year.

The situation has become more complex after the recent banking turmoil, and the IMF notes that the risk of a hard landing, particularly for developed economies, is much greater. “Financial conditions have tightened, which is likely to lead to less lending and lower economic activity if the situation continues.”the report notes.

“Policymakers may face difficult dilemmas in reducing inflation and sustaining growth while ensuring financial stability”refers.

The Fund estimates that the decline in global inflation will be relatively slow and a return to the central banks’ target will be reached by 2025 in most countries. “The road to a return to monetary stability could be long,” the report notes. He adds, however, that there are no signs of a spiral of wage and price increases.

Regarding the interest ratesnotes that most central banks are expected to continue their hikes as there are few signs of structural inflation abating. “The tightening of monetary policy has led to large increases in borrowing costs, raising concerns about the debt sustainability of some countries.”