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Global Growth Steady Amid Slowing Disinflation and Rising Policy Uncertainty
July 16, 2024
Major economies are becoming more aligned, but the world’s medium-term prospects remain weak
World Economic Outlook Update, July 2024: The Global Economy in a Sticky Spot
July 16, 2024
The Global Economy in a Sticky Spot
Global growth is projected to be in line with the April 2024 World Economic Outlook (WEO) forecast, at 3.2 percent in 2024 and 3.3 percent in 2025. Services inflation is holding up progress on disinflation, which is complicating monetary policy normalization. Upside risks to inflation have thus increased, raising the prospect of higher for even longer interest rates, in the context of escalating trade tensions and increased policy uncertainty. The policy mix should thus be sequenced carefully to achieve price stability and replenish diminished buffers.
Canada: 2024 Article IV Consultation-Press Release; and Staff Report
July 16, 2024
The Canadian economy appears to have achieved a soft landing: inflation has come
down almost to target, while a recession has been avoided, with GDP growth cushioned by
surging immigration even as per capita income has shrunk. Housing unaffordability has risen to
levels not seen in a generation, with demand boosted by immigration and supply facing
continued challenges to expansion.
Albania: 2024 Staff Visit Press Release
July 15, 2024
Europe Can Better Support Venture Capital to Boost Growth and Productivity
July 15, 2024
Reforms could increase investment in high-tech startups that power innovation
Iceland: Selected Issues
July 15, 2024
Selected Issues
Iceland: 2024 Article IV Consultation-Press Release; and Staff Report
July 15, 2024
Economic Developments. Following an impressive recovery from the covid pandemic
and commodity price shocks in recent years, a coordinated tightening of monetary and
fiscal policies has successfully slowed domestic demand growth, strengthened the
current account, and started to lower inflationary pressures. Recent volcanic activity has
disrupted lives and livelihoods, but the macroeconomic impact is limited.