IMF warns of ongoing inflation risk to global economy

The International Monetary Fund on Tuesday modestly upgraded its outlook for the world economy, but warned of ongoing risks including persistent inflation and geopolitical turmoil. 

The Washington-based institution said in its latest World Economic Outlook that global gross domestic product will grow by 3.2% this year – which represents a 0.1 percentage point bump from its January forecast – and expand at that same pace in 2025.

"Despite gloomy predictions, the global economy remains remarkably resilient, with steady growth and inflation slowing almost as quickly as it rose," said Pierre-Olivier Gourinchas, the IMF’s chief economist, in a blog post.

The latest figures suggest the U.S. economy is likely to grow 2.7% this year and 1.9% in 2025.