Global inflation is expected to decline to 3.8% this year and then 3.4% in 2027, supported by slowing demand and lower energy prices, according to the International Monetary Fund (IMF).
IMF Managing Director Kristalina Georgieva said global economic growth remains resilient despite major changes in geopolitics, trade policy, technology and demographics.
The statement was made in her speech at the Annual Arab Fiscal Forum in Dubai.
She also stressed the importance of global trade integration in an increasingly fragmented world environment due to the increase in unilateral trade agreements.
The IMF believes that strengthening trade integration can reduce the risk of supply chain disruptions, stabilize investment flows and support long-term growth.
The IMF also announced that global trade activity has not declined as feared, but has continued to grow, although at a slightly slower pace than world economic growth.
The IMF's call for stronger trade integration reflects concerns about the trend of global trade fragmentation, which has the potential to suppress cross-border investment flows and undermine market efficiency.
In this context, efforts to expand regional and multilateral trade agreements are seen as important to ensure the stability of world economic growth.
For emerging economies, stronger trade integration can open up new market access, accelerate technology transfer, and improve export competitiveness.
Meanwhile, developed countries have the potential to benefit from lower production costs and more stable supply chains.
