Global economy to slow to 2.8% in 2025 due to trade tensions – IMF

The International Monetary Fund has updated its World Economic Outlook, lowering expectations for global GDP growth. Experts now predict global economic growth of 2.8% in 2025 and 3% in 2026, while in the January forecast this figure was 3.3% for both years.This is reported by Interfax-Ukraine. The deterioration of 0.8 percentage points is significantly lower than the historical average of 3.7% for 2000-2019. The main reason for the forecast reduction was the new tariff measures by the US and corresponding steps by its trading partners.According to the updated forecast, developed countries are expected to grow by 1.4% in 2025. In the US, the economy will slow to 1.8%, which is 0.9 pp. lower than the January forecast. In the eurozone, growth will slow to 0.8%, which is 0.2 pp. lower than previous expectations.As for Ukraine, the IMF confirmed its GDP growth forecast at 2% for 2025 and 4.5% for 2026. At the same time, average annual inflation is expected to be 12.6% this year, and 7.7% next year.Let us recall that according to the Institute of Economic Research, Ukraine's real GDP in the first quarter of 2025 grew by 1.1% compared to the same period last year. The best indicators were recorded in March, when growth was 1.3%. In January, this indicator was 1.2%, and in February it slightly decreased to 0.7%.

 

Source: https://fintechinsider.com.ua/svitova-ekonomika-spovilnytsya-do-28-u-2025-roczi-cherez-torgovelnu-napruzhenist-mvf/