“” 
THE global economy remains resilient, with steady growth and inflation slowing, according to a new analysis by the International Monetary Fund (IMF), reports Hong Kong’s Apex Media.
‘Worryingly, progress toward inflation targets has stalled. This could be a temporary setback. Oil prices have been rising and services inflation remains stubbornly high,’ said the imf report.
Once inflation is under control, said the IMF, credible multiyear consolidations will help pave the way for further monetary policy easing.
Good news on inflation came from the decline in energy prices and in goods inflation – the latter has been helped by easing supply-chain frictions, as well as by the decline in Chinese export prices.
Despite supply-chain disruptions, an energy and food crisis, and a considerable surge in inflation, growth this year and next will hold with median headline inflation declining from 2.8 per cent at the end of 2024 to 2.4 per cent at the end of 2025,’ said the IMF study.
The IMF also project ‘less economic scarring from the crises of the past four years, although estimates vary across countries.’
‘But we now estimate that there will be more scarring for low-income developing countries, many of which are still struggling to turn the page from a cost-of-living crisis,’ the report said.
The second priority is to reverse the decline in medium-term growth prospects, and the IMF said artificial intelligence (AI) also gives hope for boosting productivity.
‘Harnessing the potential of AI for all will require that countries improve their digital infrastructure, invest in human capital, and coordinate on global rules of the road,’ said the report.
Lastly, the IMF pointed out that the green transition requires ‘major investments.’
‘Cutting emissions is compatible with growth, and activity has become much less emission-intensive in recent decades. But emissions are still rising. Much more needs to be done and done quickly,’ it said.
‘Green investment has expanded at a healthy pace in advanced economies and China. The greatest effort must now be made by other emerging markets and developing economies, which must massively increase their green investment growth and reduce their fossil fuel investment.’
The IMF noted that this will require technology transfer by other advanced economies and China, as well as substantial private and public financing.
# imf# first# fix# inflation# then# add# quantitative# easing
