The International Monetary Fund (IMF) has revised its global growth forecast for 2025 upward to 3.3%, according to its latest World Economic Outlook (WEO) update. Apexnewsgh reports
This slight adjustment reflects an improved outlook for the United States, which offset downward revisions for other major economies.
Although the forecast remains below the historical average growth rate of 3.7% recorded between 2000 and 2019, it signals a modest improvement in global economic prospects. The IMF projects global headline inflation to decline further, reaching 4.2% in 2025 and 3.5% in 2026.
The report highlights the need for policymakers to balance curbing inflation with supporting growth, as global economies navigate the post-pandemic landscape. Advanced economies are likely to meet inflation targets sooner than emerging market and developing economies, indicating a divergence in economic recovery trajectories.
The IMF warns that medium-term risks to the baseline are tilted to the downside, with policy-generated disruptions to the disinflation process posing a significant risk.
To mitigate these risks, policymakers must focus on balancing trade-offs between inflation and real activity, rebuilding buffers, and lifting medium-term growth prospects through structural reforms and stronger multilateral cooperation.
Source: Apexnewsgh.com