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IMF Expects Global Growth Stability with Continued Decline in Inflation

IMF Managing Director Kristalina Georgieva stated that the International Monetary Fund anticipates stability in global economic growth and a continued decline in inflation rates, according to the “World Economic Outlook” report set to be released on January 17.

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Georgieva noted that the U.S. economy has performed better than
expected despite challenges stemming from uncertainty surrounding policies of President-elect Donald Trump.
These uncertainties complicate global economic conditions and contribute to higher long-term interest rates.

United States

U.S. Labor Market Surprises with Positive Employment Indicators and December Unemployment Decline
Data from the U.S. labor market for December 2024 showed notable improvement,
with the economy adding 256,000 new jobs, surpassing the forecast of 160,000 jobs.
November figures were also revised up to 212,000 jobs. Additionally, the unemployment rate fell to 4.1%,
lower than both expectations and the previous reading of 4.2%.
Regarding wages, the average hourly earnings grew by 0.3% month-on-month, aligning with expectations,
and increased by 3.9% year-on-year, slightly below the forecasted 4.0%.
These figures reflect a strong performance in the U.S. labor market, indicating stable economic activity across all sectors.

London

London Strengthens Its Role as a Hub for Chinese Financial Firms Amid UK Bond Market Turmoil
British Finance Minister Rachel Reeves emphasized during her visit to Beijing that London is a “natural home” for Chinese financial services firms, providing a platform for capital raising and global expansion.
In a meeting with her Chinese counterpart, He Lifeng, Reeves highlighted opportunities to deepen collaboration between the two nations in capital markets, co-chairing the relaunch of UK-China financial services talks.
China’s Foreign Ministry announced that the discussions cover economic policy, trade, and investment,
asserting that enhanced cooperation between the two countries will support the global economy and boost confidence.

IMF Expects Global Growth Stability with Continued Decline in Inflation

The IMF: Global Public Debt Could Exceed $100 Trillion in 2024 Amid Rising Spending in the U.S. and China:
The International Monetary Fund (IMF) expects total global public debt to surpass the $100 trillion mark in 2024,
Driven by increased spending in major economies such as the United States and China.
In its Global Financial Outlook report,
The IMF noted that the global public debt-to-GDP ratio will reach 93% by the end of this year
and is likely to approach 100% by 2030,
exceeding the peak observed during the COVID-19 pandemic, which was 99%.

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Countries like the United States, Brazil, France, Italy, South Africa,
and the United Kingdom is expected to see its debt levels rise.
The IMF warned that delaying action to address this issue
could trigger negative market reactions and weaken governments’ ability to manage their budgets in times of crisis.

The report also highlighted that global challenges,

such as the transition to clean energy, aging populations, and security risks,
have increased uncertainty regarding fiscal policies, adding pressure on public spending.
In the worst-case scenario, the IMF projected that the global debt-to-GDP ratio could reach 115% within three years.

The IMF: Global Public Debt Could Exceed $100 Trillion in 2024 Amid Rising Spending in the U.S. and China