IMF Predicts Strong Global Economic Growth in 2019 and Low Likelihood of Recession: But Recent Events May Change Forecast

In a recent interview with Yahoo Finance reporter Jennifer Schonberger, the International Monetary Fund (IMF) released its new World Economic Outlook report. The IMF predicts that global economic growth will remain strong this year, with the world economy expected to grow by 3.2%, which is on par with last year’s growth rate. The chances of a global recession are low, with only a 10% likelihood this year.

One of the factors driving this growth is global inflation, which is expected to continue decreasing. Factors such as falling core inflation rates, higher interest rates, weakening job markets, and relief from elevated energy prices are all contributing to this trend. However, Schonberger notes that this forecast was made before Iran’s recent air attack on Israel, which could impact global economic stability.

Despite this potential threat, the IMF believes that inflation will lead to global central banks cutting interest rates in the latter half of the year. This includes the Federal Reserve, which may lower rates three times by the end of 2024. For more information and analysis on this topic and other market updates, viewers can watch the full episode of Yahoo Finance.