The International Monetary Fund (IMF) edged its forecast for global economic growth higher and citing faster-than-expected easing of inflation.
- The IMF’s chief economist, Pierre-Olivier Gourinchas, said the global lender’s updated World Economic Outlook showed that a “soft landing” was in sight, but overall growth and global trade still remained lower than the historical average.
- A soft landing is when a central bank—such as RBI—is able to bring inflation down and cool a hot economy without setting off a significant decline in economic activity, also known as a recession.
- It is a situation where the central bank can raise interest rates just enough to slow the economy and reduce inflation without causing a recession.
- Many economists consider a mild recession with a small increase in the unemployment rate as soft landing.
