The battle against inflation is almost won, chief economist of the International Monetary Fund (IMF) Pierre-Olivier Gourinchas has said, with geopolitical tensions, potential new trade wars and falling migration into developed countries now among the key risks facing the world economy. It added that inflation, which has largely been tamed, will slow to 4.3% next year from 5.8% in 2024. "There is geopolitical risk, with the potential for escalation of regional conflicts,” that could affect commodity markets, Mr Gourinchas said. Britain's long-suffering growth outlook got a boost of 0.4% for 2024 as falling inflation and lower interest rates are expected to stoke consumer demand. Social unrest was also listed as a key risk by the IMF, noting rises in protests, riots and major demonstrations.

Source: Irish Examiner October 22, 2024 14:19 UTC