The IMF’s recent World Economic Outlook indicates that while global growth remains steady, it is underperforming compared to pre-pandemic levels. Key risks include geopolitical tensions, volatility in financial markets, and potential challenges in China’s property sector. These issues are prompting economists to push for structural reforms and a “policy pivot”.
Read the article to know how it can sustain economic recovery through targeted fiscal and monetary adjustments.
https://www.imf.org/en/Publications/WEO/Issues/2024/10/22/world-economic-outlook-october-2024
Vocabulary Questions:
- What does “notable” mean? “However, notable revisions have taken place beneath the surface since April 2024, with upgrades to the forecast for the United States offsetting downgrades to those for other advanced economies, in particular, the largest European countries.” Use it in a sentence.
- What does “emerging” mean? “Likewise, in emerging market and developing economies, disruptions to production and shipping of commodities—especially oil—conflicts, civil unrest, and extreme weather events have led to downward revisions to the outlook for the Middle East and Central Asia and that for sub-Saharan Africa.” Use it in a sentence.
- What does “bolstered” mean? “These have been compensated for by upgrades to the forecast for emerging Asia, where surging demand for semiconductors and electronics, driven by significant investments in artificial intelligence, has bolstered growth, a trend supported by substantial public investment in China and India.” Use it in a sentence.
Discussion Questions:
- What are some potential impacts on consumers if financial market volatility increases?
- Why do you think a policy pivot is important for maintaining economic stability right now?
- How might challenges in China’s property market influence other economies around the world?
- How do you think rising geopolitical tensions affect the global economy and international trade?