Despite notes of optimism, the latest predictions have been revised down slightly, reflecting negative surprises in a few emerging market economies, India in particular.
Here is a reality check:
Global economic growth is projected to be 3.3% in 2020 and 3.4% in 2021, according to the IMF’s latest World Economic Outlook, which has been unveiled in Davos.
This is higher than the estimated growth of 2.9% in 2019, pointing to a sluggish recovery and the tentative stabilization of the world economy.
There are signs that manufacturing activity and global trade have reached their lowest point, while the risk of a no-deal Brexit and a US-China trade war have lessened.
If these early signs of stabilization persist, both consumer and business spending are likely to improve, further boosting the economy.