The International Monetary Fund (IMF) expects inflation to decline slightly in 2023 and 2024. “But it remains on an uncomfortably high side for the entire period, so it remains troublesome,” says BNR in-house economist Han de Jong.
De Jong bases this conclusion on the IMF’s risk assessment. In his view, downside risks dominate on the upside. The course of the crown in China can be a risk, and of course the war in Ukraine. On the other hand, the reopening of the Chinese economy could also lead to a decline in inflation.
Less pessimism
And there’s more reason for cautious optimism, or ‘less pessimism’, says De Jong. For example, the IMF changed its forecast for global economic growth this year from 2.7 percent growth to 2.9 percent. This adjustment is easy to explain. “This is due to the sharp drop in energy prices, the end of the lockdowns in China, a decrease in problems in supply chains and also lower transport prices. So that adjustment isn’t that surprising.’
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
