A Global Drop in Inflation, Without a Recession? Now That’s a Win

The International Monetary Fund (IMF) announced that the global war against inflation was essentially won.

“The decline in inflation without a global recession is a major achievement,” writes Pierre-Oliver Gourinchas, the IMF’s Chief Economist.

Following the pandemic, global inflation rose significantly. Last year, it stood at a rate of 6.7 per cent. The latest studies predict it will fall to 5.8 per cent this year and drop to 4.3 per cent by 2025. In most developed nations, inflation is set to fall to 2 per cent by 2025 – the target range most major central banks set. IMF predicts the world economy will grow by 3.2 per cent in 2024 and 2025. India, Japan, The United Kingdom, and The United States are some countries expected to record steady economic growth in the coming months. What’s more, economists emphasize that this period of inflation had a surprisingly small effect on overall economic growth.