World Economic Outlook 2025: Growth Slows, Risks Mount

The IMF’s World Economic Outlook (WEO) released in October 2025 reveals a sobering message: while global growth is projected to decelerate moderately, risks remain deeply tilted to the downside. IMF

According to the report, global GDP growth is expected to drop from 3.3 % in 2024 to 3.2 % in 2025, and further to 3.1 % in 2026. IMF Advanced economies are forecast to grow by about 1.5 %, while emerging markets and developing economies hover just above 4 % growth. IMF

Inflation is projected to continue its downward trend globally, though with significant variation: in some economies (notably the U.S.), inflation may stay above target, while other regions see more subdued levels. IMF

The report highlights several key threats: rising protectionism, prolonged uncertainty, supply shocks, fiscal vulnerabilities, and the possibility of financial market corrections. IMF Policymakers are urged to shore up confidence via transparent and credible policies, preserve central bank independence, and focus on structural reforms. IMF

Why this matters globally:

• Slower growth complicates debt sustainability, especially in low-income and middle-income countries.
• The uneven inflation trajectory will challenge central banks: some may tighten prematurely, others may lag and risk stagflation.
• The structural reforms recommended (in labor, trade, governance) often require political will and social consensus — conditions that are fragile in many countries.