IMF’s 2024 world economic outlook unveiled

The International Monetary Fund (IMF) has released its latest world economic outlook, maintaining the global growth forecast for this year at 3.2%. However, there have been revisions in growth projections for Sub-Saharan Africa, with a slight downgrade to 3.6% from its previous forecast in July. Nigeria has faced challenges leading to a lower growth forecast, while South Africa's economic performance has seen upgrades. CNBC Africa interviewed Jean-Marc Natal, Author and Deputy Chief of the World Economic Studies Division at the IMF, to discuss the key factors influencing these changes. The positive news for South Africa is attributed to structural improvements, particularly in energy and logistics sectors, contributing to increased confidence and future consumption. Despite the upgrades, there is a need for further structural reforms to achieve higher growth rates aligned with the country's economic ambitions. Natal highlighted the importance of reforming business environments, reducing labor market rigidities, and advancing renewable energy initiatives to drive future growth and energy security. On the other hand, Nigeria has faced a challenging year with issues like insecurity, maintenance work, and flooding impacting its economic prospects. The IMF recommends policy interventions focused on relief efforts and cash transfers to vulnerable households to mitigate the effects of these challenges. The global economic outlook remains unchanged at 3.2%, with contrasting shifts at regional levels. While the US has seen growth revisions upwards, certain European and emerging market economies have faced downgrades. Geopolitical tensions and uncertainties, including conflicts and weather events, continue to pose risks to global economic stability. The IMF has adjusted the balance of risks to the downside due to increasing geopolitical tensions, geoeconomic fragmentation, and potential financial market volatility. These factors could impact commodity prices, monetary policies, trade, and financial conditions, ultimately affecting global growth prospects. Despite the resilience of the global economy, uncertainties remain, highlighting the need for proactive risk management and policy responses to navigate the challenges ahead.