The International Monetary Fund (IMF) increased its forecast of how much the global economy will grow this year to 3%.

The 0.2% improvement from April’s forecast was partly driven by increased post-pandemic travel.

A strong jobs market and services sector was also included in the predicted uptick.

But soaring consumer prices and higher interest rates remained risks in developed nations, the IMF said.

China’s delicate economic recovery was also amongst the biggest risks on the horizon.

The IMF’s chief economist Pierre-Olivier Gourinchas told the BBC that the recovery from the pandemic is still having an impact.

He said in the first three months of 2023, there was a “strong resilience” in the demand for services, going out, and travel and tourism.

“Those countries [that] are tourist destinations have done relatively well. Those countries [that] are more manufacturing hubs have done maybe a little bit less strongly,” Mr Gourinchas added.

The latest numbers from the International Air Transport Association show that in May global air traffic continued its recovery, reaching 96.1% of pre-covid levels.

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