The global economy is expected to slow down as trade-related distortions decrease, according to the World Economic Outlook. For 2025 and 2026, forecasters predict growth rates of 3.0 percent and 3.1 percent, respectively. This revised estimate reflects a faster-than-expected start to the year due to factors such as reduced tariffs, improved financial conditions, and increased fiscal spending in major economies.
However, despite these positive developments, global inflation is expected to decline, but US inflation remains above target levels. This highlights ongoing challenges and the need for policymakers to address uncertainty and geopolitical tensions that could impact growth.
Restoring confidence, predictability, and sustainability will remain a key policy focus. As the global economy continues to navigate this shifting landscape, governments and central banks must prioritize these goals to ensure stable and sustained growth.
Source: https://www.imf.org/en/Publications/WEO/Issues/2025/07/29/world-economic-outlook-update-july-2025