IMF raises global growth forecast, highlights economic disparities

TDT | agencies

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Global growth is projected to rise slightly to 3.3% this year, the IMF said in an update to its World Economic Outlook. This marks a 0.1 percentage point increase from its October forecast but remains below the pre-pandemic average of 3.7%. Growth is expected to stay steady at 3.3% through 2026.

Global inflation is forecast to ease, dropping to 4.2% this year and 3.5% by 2026. Prices are expected to cool faster in advanced economies than in emerging markets.

The IMF noted a growing economic divide, with the United States showing resilience, driven by a robust labor market and private demand. US growth is projected at 2.7% in 2025 and 2.1% in 2026.

In contrast, the Euro area faces slower growth, with Germany's outlook dragging the region to just 1.0% growth this year. China's growth is expected to cool to 4.6% this year, slightly revised upward due to recent fiscal support measures. India remains a bright spot among emerging markets, with growth forecast at 6.5% this year and next.

The Middle East and Central Asia will see slower growth due to OPEC+ oil production cuts, while Latin America and sub-Saharan Africa are expected to experience modest acceleration. Structural factors, such as the United States' stronger productivity and deeper capital markets, continue to drive economic divergence, the IMF noted.