The International Monetary Fund (IMF) projects global growth to be in line with the April 2024 World Economic Outlook (WEO) forecast, at 3.2 percent in 2024 and 3.3 percent in 2025. 

However, varied momentum in activity at the turn of the year has somewhat 
narrowed the output divergence across economies as cyclical factors wane and activity becomes better aligned with its potential, it said in its world economic outlook update. 

Services price inflation is holding up progress on disinflation, which is complicating monetary policy 
normalization. 

Upside risks to inflation have thus increased, raising the prospect of higher-for-even-longer interest rates,
in the context of escalating trade tensions and increased policy uncertainty. 

"To manage these risks and preserve growth, the policy mix should be sequenced carefully to achieve price stability and replenish diminished buffers," the IMF said.