April 22, 2025

The International Monetary Fund (IMF) has downgraded its global economic outlook for 2025, warning that escalating trade tensions and deepening policy uncertainty are weighing on growth prospects and pushing the world further into a period of economic fragmentation.

In its latest World Economic Outlook report, the IMF projects global GDP to expand by 2.8 percent in 2025 and rise by 3 percent in 2026, down from the previous prediction of 3.3 percent for both years. These figures marked a substantial slowdown compared to the historical average of 3.7 percent between 2000 and 2019.

The report revealed that advanced economies will be among the hardest hit: Growth in this group is forecasted at 1.4 percent in 2025. 

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