IMF: CBs could tame Inflation without causing a recession

IMF: CBs could tame Inflation without causing a recession

KUWAIT: The IMF and World Bank held an annual meeting in Marrakech on Tuesday where the divergence between country groups economic recovery was addressed, as well as the financial risks associated with “higher for longer” interest rates. The IMF sees that there is a higher probability for central banks to tame inflation without causing a recession in the global economy, and is now expecting global economic growth to slow down from 3.5 percent in 2022, to 3 percent in 2023, and to 2.9 percent in 2024.

Meanwhile, global inflation is forecast to decline to 6.9 percent this year from 8.7 percent in 2022, and down to 5.85 percent in 2024. IMF chief economist Pierre Olivier Gourinc has added it was too soon to tell how the conflict in the Middle East “could affect economic growth in the region and the rest of the world.” US September PPI data was released on Wednesday, showing a higher than expected increase as final demand rose by 0.5 percent from the previous month, and 2.2 percent from the previous year, marking the third consecutive monthly increase.

While the cost of gasoline increased by 5.4 percent, PPI excluding food and energy showed a 0.3 percent monthly increase,