December 27, 2025 02:57 am (IST)
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IMF forecasts lower global growth this year
Washington, Oct 6 (IBNS): The Indian Monetary Fund (IMF) on Tuesday predicted a lower global growth compared to last year, with modest pickup in advanced economies.
In its latest World Economic Outlook (WEO), the IMF stated that Global real GDP grew at 3.4 percent last year and is forecast to grow at only 3.1 percent this year. Growth is expected to rebound to 3.6 percent next year.
"The IMF’s latest World Economic Outlook (WEO) foresees lower global growth compared to last year, with modest pickup in advanced economies and a slowing in emerging markets, primarily reflecting weakness in some large emerging economies and oil-exporting countries," the IMF stated.
“Six years after the world economy emerged from its broadest and deepest postwar recession, the holy grail of robust and synchronized global expansion remains elusive,” said Maurice Obstfeld, the IMF Economic Counsellor and Director of the Research Department.
“Despite considerable differences in country-specific outlooks, the new forecasts mark down expected near-term growth marginally but nearly across the board. Moreover, downside risks to the world economy appear more pronounced than they did just a few months ago,” Obstfeld said.
These forecasts reflect a world economy that is at the intersection of at least three powerful forces, Obstfeld noted.
"First, China’s economic transformation—away from export- and investment-led growth and manufacturing, in favor of a greater focus on consumption and services; second, and related, the fall in commodity prices; and third, the impending increase in U.S. interest rates, which can have global repercussions and add to current uncertainties," the IMF survey stated.
In this global environment, with the risk of low growth for a long time, the WEO underlines the need for policymakers to raise actual and potential growth.
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