The International Monetary Fund (IMF) lifted China's 2024 economic growth outlook to 4.6 percent on Tuesday, from its previous estimate of 4.2 percent.

This upward revision is due to stronger-than-expected growth in 2023 and increased government spending on disaster preparedness.

Globally, the IMF projected a growth of 3.1 percent in 2024, 0.2 percentage point higher than previously forecasted. This revision reflects greater confidence in China's fiscal measures and resilience in the United States and several large emerging economies.

China's positive outlook offers further potential for global growth surprises. The IMF identified prospective upside factors like additional property sector reforms and larger-than-expected fiscal support, which could boost consumer confidence and private demand.

Meanwhile, global headline inflation is expected to gradually decrease, reaching 5.8 percent in 2024 and 4.4 percent in 2025. The key challenge for policymakers will be managing this descent successfully, calibrating monetary policy to underlying inflation dynamics and gradually adopting a less restrictive stance, according to the IMF.