The International Monetary Fund (IMF) announced in its report published on Tuesday it revised its prediction for the global economy's growth in 2025 from 3.2% to 3.3% while maintaining the expectations for 2024 at 3.2%.
Regionally, the Eurozone's gross domestic product (GDP) is projected to grow by 0.9%, an upward change compared to the previously calculated 0.8%. In 2025, it is expected to grow by 1.5%. The United States is seen as expanding by 2.6% in 2024 and 1.9% in 2025. The United Kingdom's economy is expected to improve by 0.7% in 2024 and 1.5% in 2025. Meanwhile, China's growth was revised up to 5.0% in 2024 and 4.5% in 2025.
"Services inflation is holding up progress on disinflation, which is complicating monetary policy normalization. Upside risks to inflation have thus increased, raising the prospect of higher for even longer interest rates ... The policy mix should thus be sequenced carefully to achieve price stability and replenish diminished buffers," the IMF warned.
