Global growth is holding steady, but remains below historical averages the IMF is reporting in its latest forecast released Friday (January 17) in Washington, DC.

Inflation is moderating back towards central bank targets and growth holding steady at 3.3%, but there are risks and uncertainty the IMF said ahead of the release of the quarterly World Economic Outlook update.

“Global growth is projected to hold steady at 3.3% this year and next, aligned with weakened potential growth since the pandemic. Inflation is steadily declining—reaching 4.2% this year and 3.5% next—bringing us closer to central bank targets. This is the end of a cycle, and the beginning of a new one. But divergences across countries are widening. The U.S. economy is exceeding expectations with stronger domestic demand, while Europe faces sluggish growth and persistently high energy prices. Emerging markets show resilience, with China set for a modest recovery,” said IMF Chief Economist and Director of Research, Pierre-Olivier Gourinchas ahead of the reports release.