World Economic Outlook Update, July 2024: The Global Economy in a Sticky Spot
World Economic Outlook, July 2024
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- World Economic Outlook Update, July 2024: The Global Economy in a Sticky Spot
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Bibliographic details
- Published: July 16, 2024
Overview
- Global growth is projected to be in line with the April 2024 World Economic Outlook (WEO) forecast.
- Services inflation is holding up progress on disinflation, complicating monetary policy normalization.
- Upside risks to inflation have increased, raising the prospect of "higher for even longer" interest rates.
- These developments occur in the context of escalating trade tensions and increased policy uncertainty.
- The policy mix should be sequenced carefully to achieve price stability and replenish diminished buffers.
Growth projections
- Global growth: 3.2 percent in 2024.
- Global growth: 3.3 percent in 2025.
Inflation dynamics and monetary policy implications
- Services inflation is a key factor slowing disinflation progress.
- The persistence of services inflation complicates monetary policy normalization.
- Upside risks to inflation have increased, which raises the prospect of "higher for even longer" interest rates.
Risks and context
- Escalating trade tensions.
- Increased policy uncertainty.
- Diminished buffers that policymakers should consider when sequencing the policy mix.
Policy recommendations
- Sequence the policy mix carefully to:
- Achieve price stability.
- Replenish diminished buffers.
Source: World Economic Outlook Update, July 2024: The Global Economy in a Sticky Spot
Content in this bundle
- WEO Update July 2024
- Full Report