“Moderating Inflation and Steady Growth: An Open Path to Soft Landing,” the IMF’s most recent World Economic Outlook (WEO) Update Report for January 2024, which was made public on Tuesday in South Africa, supports this assertion.

According to the research, the 2024 prediction exceeded the October 2023 WEO projections by 0.2 percentage points. It said that this was because of China’s fiscal support, as well as the United States’ stronger-than-expected resilience and numerous sizable emerging markets and developing economies.

However, the projection for 2024–2025 is less than the historical average of 3.8% for the period 2000–19.

“With low underlying productivity growth, a withdrawal of fiscal support amid high debt weighing on economic activity, and elevated central bank policy rates to fight inflation.”

Sub-Saharan Africa’s growth was predicted by the research to be 3.8 in 2024 and 4.1 in 2025. According to it, Nigeria’s economy will rise by 3.0 and 3.1 percent in 2024 and 2025, respectively.

According to the report, most regions were seeing faster-than-expected inflation declines as a result of tighter monetary policy and supply-side problems that are ending. According to the report, global headline inflation is predicted to decline to 4.4% in 2025 after being revised down from 5.8% in 2024.

According to the assessment, threats to the global economy were roughly balanced, and the danger of a hard landing had decreased with disinflation and sustained growth.