IMF head projects slightly stronger global growth in 2024 and warns of potential long-term pitfalls

WASHINGTON — Strong economic activity in the United States and emerging markets is expected to help boost global growth by about 3% this year, the president of the International Monetary Fund said Thursday, below the annual historical average and a warning sign of possible subdued performance in the 2020s.

“Without course correction, we are indeed heading towards ‘the lukewarm twenties’ – a slow and disappointing decade,” said Kristalina Georgieva, the organization’s chief executive, in announcing the economic projections and longer-term prospects.

She said that according to past measurements, global economic activity is weak and debt levels have risen, posing major challenges to public finances in many parts of the world.

“The scars of the pandemic are still with us. Global output losses since 2020 amount to approximately $3.3 trillion, with the costs falling disproportionately on the shoulders of the most vulnerable countries,” she said.

The expected growth rate of just over 3% is slightly above last year’s projection. The historical average is 3.8%.

“Global growth is marginally stronger thanks to robust activity in the United States and many emerging market economies,” Georgieva said.

The IMF and its fellow lending agency, the World Bank, will hold their spring meetings next week in Washington, where finance ministers, central bankers and policymakers will discuss the global economy’s most pressing issues.

The annual meeting will take place as several conflicts threaten global financial stability, including the Russian invasion of Ukraine and the war between Hamas and Israel in Gaza.