Its development global economy remains stable, while decline in inflation is slowing, according to his new updated forecasts International Monetary Fund (World Economic Outlook Update).

At the same time, the IMF “xtipa bell” for insufficient fiscal adjustment in many countries after the coronavirus pandemic, criticizing the US in particular for the continued increase in their debt which poses risks to their economy and to the global economy.

The IMF predicts that world GDP to grow 3.2% this year (as with the April report) and 3.3% in 2025, marginally higher than in April.

The Eurozone expected to develop 0.9% this year (versus a forecast of 0.8% in April) and 1.5% in 2025while on US GDP growth is estimated at 2.6% and 1.9%, respectively.

The main engine for global growth is the emerging Asian economies, especially China and India, which account for half of global GDP growth.

However, the Fund emphasizes that the global outlook will remain weak for the next five years because momentum in Asian economies is expected to weaken, with China’s GDP expected to grow by 3.3% in 2029.

For global inflation it predicts that will decrease this year to 5.9% (as in April) from 6.7% in 2023 but notes that there is a slowdown in developed economies and especially the US.

The Fund considers the risks to its forecasts to be balanced, but singles out two as most significant.

Firstly, further problems in deflation developed economies could push central banks such as the US Fed to keep interest rates higher for even longer. This would put overall growth at risk, with increased upward pressure on the dollar with a negative impact on emerging and developing economies.

“The good news is that as the shocks subsided, inflation declined without a downturn in the economy. The bad news is that while energy and food price inflation has almost returned to pre-pandemic levels in many countries, headline inflation has not.” reports the Fund as service prices rise further.

Secondly, the Fund emphasizes thatThe fiscal problems must be addressed more immediately as their worsening has left many countries more vulnerable than anticipated before the pandemic.

“Very little is being done, fueling uncertainty about economic policy. The projected fiscal adjustments are particularly insufficient in too many countries.

It is worrying that a country like the US, at full employment, has a fiscal stance that pushes the debt-to-GDP ratio steadily higher, with risks to both the domestic and global economy.

The US’s growing reliance on short-term financing is also a concern. With higher debt, slower growth and larger deficits, it wouldn’t take long for debt runs to become less convenient, with risks to financial stability.”the IMF points out.