The International Monetary Fund (IMF) outlines in its World Economic Outlook report that the survey of prospects and policies is the result of an extensive interdepartmental assessment of global economic trends, primarily relying on information collected by IMF staff during consultations with member countries. These consultations are predominantly conducted by the IMF's area departments, which include the African Department, Asia and Pacific Department, European Department, Middle East and Central Asia Department and Western Hemisphere Department, in collaboration with the Strategy, Policy and Review Department, the Monetary and Capital Markets Department and the Fiscal Affairs Department, according to the World Economic Outlook report by IMF.
"The analysis and projections contained in the World Economic Outlook are integral elements of the IMF’s surveillance of economic developments and policies in its member countries, of developments in international financial markets and of the global economic system," the World Economic Outlook report by the International Monetary Fund stated.
The global economic recovery, shaped by the COVID-19 pandemic and Russia's invasion of Ukraine, remains sluggish and uneven. Divergences between regions persist due to factors like long-term pandemic consequences, geopolitical fragmentation and cyclical challenges such as monetary policy tightening, according to the World Economic Outlook report by IMF.
Global growth is forecast to decrease from 3.5% in 2022 to 3.0% in 2023 and further to 2.9% in 2024. Advanced economies are slowing down, especially in the Euro area, while emerging markets and developing economies face modestly declining growth, mainly due to the property sector crisis in China. Achieving higher living standards remains a challenge, and global inflation is expected to decline gradually, possibly not reaching target levels until 2025, according to the World Economic Outlook report by IMF.
While risks have become more balanced due to recent resolutions and actions, challenges persist, including potential crises in China's property sector, inflation pressures and climate and geopolitical shocks. Policymakers must address these challenges, with central banks focused on price stability, fiscal policymakers rebuilding flexibility and structural reforms supporting growth. Multilateral coordination is essential for debt resolution and addressing climate change's impacts, according to the World Economic Outlook report by IMF.