World Economic Outlook Update, July 2024: The Global Economy in a Sticky Spot
World Economic Outlook
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Summary findings
- Global growth was projected to be in line with the April 2024 World Economic Outlook (WEO) forecast, at 3.2 percent in 2024 and 3.3 percent in 2025.
- Services inflation was holding up progress on disinflation, complicating monetary policy normalization.
- Upside risks to inflation had increased, raising the prospect of higher for even longer interest rates amid escalating trade tensions and increased policy uncertainty.
Analysis and implications
- Persistent services inflation slowed disinflation progress and complicated central banks’ efforts to normalize monetary policy.
- The increased upside risks to inflation implied a higher likelihood of sustained tighter monetary policy (higher for even longer interest rates).
- Escalating trade tensions and increased policy uncertainty were identified as contextual risks amplifying inflationary pressures and economic uncertainty.
Policy recommendations
- The policy mix should be sequenced carefully to achieve price stability and replenish diminished buffers.
Key statistics and projections
- Global growth: 3.2 percent in 2024.
- Global growth: 3.3 percent in 2025.
Content in this bundle
- Weojuly2024update (XLSX)
- World Economic Outlook Update, July 2024: The Global Economy in a Sticky Spot; July 16, 2024