IMF Revises Global Growth Forecast Upward on US Strength

2025-01-17 14:55 By Joana Taborda 1 min. read

The IMF projects global growth of 3.3% for 2025, a slight increase from the 3.2% forecast in October, driven by an upward revision for the US, which offset downgrades in other major economies.

Growth for 2026 is also expected at 3.3%, unchanged from the previous projection.

The IMF highlighted that while the US faces upside risks that could bolster growth in the near term, other nations remain exposed to downside risks amid heightened policy uncertainty.

The US economy is now forecast to grow by 2.7% in 2025 (vs 2.2% in October), and China's GDP growth was revised slightly higher to 4.6% (vs 4.5%).

Conversely, the Euro Area's growth projection was downgraded to 1% (vs 1.2%), while Japan's growth forecast remains steady at 1.1%.

Projections for India’s GDP growth were maintained at 6.5%.

For the UK, the IMF raised its projection to 1.6% (vs 1.5%).

On the inflation front, the IMF expects global headline inflation to ease to 4.2% in 2025 (vs 4.3%) and further decline to 3.5% in 2026.



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