In its most recent World Economic Outlook, the International Monetary Fund (IMF) praised the robust performance of the US economy and simultaneously lowered growth projections for China and the eurozone.
For 2023, global growth estimates remain at 3.0%, although a decrease to 2.9% is anticipated for 2024.
Citing "mediocre" prospects in the medium term, chief economist Pierre-Olivier Gourinchas pointed to divergent growth patterns and various risks, including China's real estate crisis and fluctuating commodity prices.
Outperforming pre-pandemic expectations, the US received an upward revision in its growth estimates from the financial institution.
On the other hand, China faces a deceleration in economic growth, largely due to its current property market woes. Reduced growth projections were also issued for the eurozone.
Meanwhile, a slight increase in the UK's 2023 growth forecast was noted, although a reduction is expected for 2024.
Gourinchas issued a warning about medium-term economic deceleration, particularly in emerging markets, and recommended that nations fortify their fiscal safeguards for potential future shocks.
Despite a global decline in inflation rates, he also advised central banks to exercise caution and avoid easing measures prematurely.