IMF sees inflation falling to 3.8% as global economy set to hold steady on energy

Global inflation is expected to continue its downward trajectory, with rates forecast to fall to 3.8 per cent this year and further to 3.4 per cent by 2027.
International Monetary Fund
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Dubai: According to Kristalina Georgieva, Managing Director of the International Monetary Fund, she said at an Arab financial forum in Dubai that the projected decline in inflation would be driven by easing global demand and lower energy prices.

Despite a rapidly changing global landscape marked by geopolitical tensions, shifting trade policies, technological disruption and demographic changes, Georgieva noted that global economic growth has “remarkably” held up.

She stressed the importance of strengthening global trade integration at a time when trade fragmentation is increasing worldwide. While acknowledging slower momentum, Georgieva said global trade has not fallen as sharply as many had feared and is currently expanding at a pace slightly below that of the global economy.

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