International Monetary Fund expects global economy to grow by 3.3 percent in 2025, 2026

1/18/2025 2:44:27 AM

(MENAFN) On Thursday, the International Monetary Fund (IMF) predicted that the global Economy would grow by 3.3 percent in both 2025 and 2026, according to its January World Economic Outlook.

The GDP forecast for 2025 was slightly raised by 0.1 percentage point compared to its October estimate, while the outlook for 2026 remained unchanged.

Advanced economies are expected to grow by 1.9 percent this year and 1.8 percent next year, with little change from the previous projection.

Among these advanced economies, the US is predicted to see a growth of 2.7 percent in 2025, a 0.5 percentage point upward revision, reflecting continued momentum from 2024, strong labor markets, and increasing investment, among other indicators of economic strength.

The US GDP growth is expected to slow to 2.1 percent in the following year, with a small revision of 0.1 percentage point upward.

"In the US, underlying demand remains robust, reflecting strong wealth effects, a less restrictive monetary policy stance, and supportive financial conditions," stated the IMF.

The growth forecast for the euro area was, however, downgraded to 1 percent from the previously expected 1.2 percent, due to weaker-than-anticipated momentum at the close of last year, particularly in manufacturing, and increased political and policy uncertainty.

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