IMF's revised economic forecasts for 2025

IMF Raises 2025 Global Growth Forecast to 3.3% on Strong US Growth, Projects 3.3% for 2026

Jan 17, 2025, 02:24 PM

The International Monetary Fund (IMF) has revised its global economic growth forecast for 2025 upward by 0.1 percentage point to 3.3%, from its October 2024 projection. This adjustment is primarily driven by stronger-than-expected growth in the United States, which is now projected to grow at 2.7% in 2025, up from the previous estimate of 2.2%. The IMF also anticipates global growth to remain at 3.3% in 2026. Despite these revisions, global growth remains below the historical average of 3.7% seen between 2000 and 2019. The IMF has noted a widening economic divergence between the United States and other major economies, particularly in Europe. The Euro area's growth forecast for 2025 has been revised downward to 1.0% from 1.2%, reflecting weaker momentum in manufacturing and heightened political and policy uncertainty. China's growth is expected to be 4.6% in 2025, slightly up from the previous forecast, and 4.5% in 2026, while India is projected to grow at 6.5% in both 2025 and 2026. Global inflation is expected to decline to 4.2% in 2025 and 3.5% in 2026.