The International Monetary Fund (IMF) has confirmed stable global economic growth for 2025, increasing its projection for global GDP growth by 0.1 percentage points to 3.3%. The IMF also highlighted positive results in efforts to reduce inflation. The updated forecast was presented by Pierre-Olivier Gourinchas, the IMF’s chief economist, during the World Economic Outlook (WEO) update on Friday.
According to the IMF’s latest projections, global growth is expected to remain stable at 3.3% for this year and the next. Inflation is anticipated to fall to 4.2% in 2025, with further reduction to 3.5% in 2026. These figures align with the targets set by global policymakers.
Gourinchas pointed out that the large-scale global shifts triggered by the COVID-19 pandemic and the ongoing war in Ukraine, which led to the most significant inflation spike in four decades, have now passed. He described this period as the “end of the old cycle and the beginning of a new one.”
The updated data reveals a slight improvement in the global GDP growth rate compared to previous projections made in October 2024. Back then, the IMF had forecasted a 3.2% growth rate for 2025.
The forecast for the United States has been revised upwards, with growth expected to reach 2.7% this year. In contrast, the economic outlook for the Eurozone has been downgraded, with growth expected to reach only 1% in 2025. This downgrade reflects weaker consumer confidence and persistently high energy prices, especially compared to the United States. Furthermore, production growth in Europe is slower than in the US.
The IMF also noted increased uncertainty in China’s trade policies, which has dampened growth expectations for the Asian giant.
For Ukraine, the IMF has projected real GDP growth of 2.5-3.5% for 2025. In addition, the IMF continues to support Ukraine through its Extended Fund Facility (EFF), a programme aimed at stabilising the country’s economy during these challenging times.
