World Economic Outlook Update, July 2024: The Global Economy in a Sticky Spot

World Economic Outlook, July 2024

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Canonical URL: World Economic Outlook Update, July 2024: The Global Economy in a Sticky Spot

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.

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.

Escalating trade tensions.
Increased policy uncertainty.
Diminished buffers that policymakers should consider when sequencing the policy mix.

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