The International Monetary Fund lowered its global growth forecast for next year and warned of rising risks, from rising debt to global wars and trade protectionism, while giving credit to central banks for controlling inflation without pushing countries into recession.
In terms of the outlook for next year, the IMF forecast for the euro zone was downgraded to 1.2%, 0.3% lower than in July, due to persistent weakness in manufacturing in Germany and Italy. On the other hand, the US forecast for 2024 and 2025 was updated to 2.8% and 2.2%, an increase of 0.2% and 0.3% respectively, due to stronger consumption, but really because of the infinite stimulus in the form of a war-level budget deficit that now stands at 6% of GDP and which has led to an exponential increase in US debt issuance.