The global economy is expected to maintain steady growth in 2025, with projections from the International Monetary Fund (IMF) indicating a 3.3% increase in global output, in line with growth expectations for 2026. While this figure marks a stable trajectory, it falls 0.4 percentage points below the 20-year historical average from 2000 to 2019.
Inflation, which has been a significant concern in recent years, is forecasted to decline further, reaching 4.2% in 2025 and dropping to 3.5% by 2026. This easing of inflation is expected to provide central banks with the opportunity to normalize monetary policies, signaling the potential end of the global disruptions seen over the past few years, according to IMF Economic Councillor Pierre-Olivier Gourinchas.
The IMF’s latest World Economic Outlook aligns with the World Economic Forum’s (WEF) Chief Economists Outlook, which highlights a muted global growth forecast. While some regions, such as the United States, may experience short-term economic boosts, the outlook for other key global economies, including Europe and China, remains less optimistic. The report underscores significant regional divergences in growth expectations.
At the 2025 World Economic Forum Annual Meeting in Davos, leaders are focusing on the urgent need to “revive and reimagine” economic growth to foster more resilient economies. Several key sessions will explore strategies to identify new sources of growth in the evolving global economy, with an emphasis on addressing both short-term challenges and long-term opportunities.
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