IMF raises global economic growth forecast to 3.2% but still warns of downside risks

The International Monetary Fund (IMF) raised its global economic growth forecast for this year to 3.2%, but warned that downside risks still exist. This is due to the impact of a stronger U.S. dollar and rising food, fuel and fertilizer prices on inflation rates in some countries.

The IMF's Gurinchas pointed out in the report that inflation rates in some countries are higher than expected, which may have a negative impact on economic growth. He also mentioned that the U.S. economy has exceeded the trend before the new crown epidemic, but there may currently be risks of low income estimates.

Global economic growth forecast raised

The IMF's latest report shows that global economic growth expectations have been raised to 3.2%, indicating that the economy is gradually recovering. However, the IMF also warned that downside risks still exist and require vigilance.

Inflation higher than expected

The report also noted higher-than-expected inflation in some countries due to a stronger U.S. dollar and rising food, fuel and fertilizer prices. This may have a negative impact on the economic growth of these countries and requires attention.

U.S. economy surpasses pre-COVID-19 trends

Gurinchas emphasized in the report that the U.S. economy has surpassed the trend before the new crown epidemic, showing that the economy is gradually recovering. However, he also mentioned that there may now be risks of low income estimates that need to be paid close attention to.