Context:

The International Monetary Fund (IMF) has released World Economic Outlook report, 2024.

World Economic Outlook: The report offers biannual forecasts for the global economy.

Key highlights of Report:

• Global growth: Projected to remain stable at 3.2% in 2024 and 2025. 
• Uncertainty factors: Geopolitical conflict, increasing trade tensions and elections looming and leadership changes in major economies. 
• India’s Growth: Expected to grow at 6.5% in 2025-26.
• Less growth of Developing Countries: Among developing countries, the IMF downgraded growth hopes for West Asia, sub-Saharan Africa and Central Asia as conflicts and unrest disrupt production and shipping.
• Report highlights the urgency of structural reforms and discusses strategies to enhance the social acceptability of these reforms.

Structural Reforms :

• Structural Reforms are policy changes that modify acquired rights and economic rents with aim of improving the allocation of resources in the economy.
• Social Acceptability: Securing social acceptance for structural reforms can be difficult, as gains and losses from reforms are unevenly distributed across society and time. 
• Determinants of attitude towards Structural Reforms: Key determinant is personal beliefs, perceptions and other behavioural factors about effects of policy.
• It includes misinformation about policies and misperceptions about how they work. 
• Socioeconomic characteristics underlying individuals’ economic self-interest also influences policy views.

International Monetary Fund (IMF):

• The International Monetary Fund (IMF) is an international organization that works to foster global monetary cooperation, secure financial stability, promote sustainable economic growth, and reduce poverty.
• It was created in 1945 and is headquartered in Washington, D.C.
• India is the founding member.

Membership: The IMF has 190 member countries.

Objectives: The IMF's primary goals are to:

• Promote international monetary cooperation
• Facilitate international trade
• Promote exchange rate stability
• Assist in the reconstruction of the international monetary system
• Give financial assistance to countries in need