The International Monetary Fund (IMF) has cut its global growth forecast to 2.8% for 2025, down from the 3.3% it projected earlier. It now expects global GDP to rise by 3.0% in 2026, marking a significant drop from the 3.7% average recorded between 2000 and 2019.
Rising trade tensions and policy uncertainty are putting pressure on economies worldwide. Advanced economies are forecast to expand by just 1.4% next year. The United States is expected to grow by 1.8%, nearly a full percentage point below the IMF's January outlook, and the euro area's outlook slips to 0.8%.
Emerging market and developing economies will also slow, with growth forecast at 3.7% in 2025 and 3.9% in 2026.
Here's why this matters:
- Business & tech innovators: Tighter trade rules could disrupt supply chains, pushing startups to diversify suppliers and markets.
- Thought leaders: Rising fragmentation may drive calls for stronger cooperation on sustainability and digital trade standards.
- Travelers & digital nomads: Slower growth can influence currency values and travel costs, key factors when planning your next trip.
As the world faces economic headwinds, adaptability and data-driven decision-making will be critical. Whether you're launching a startup, shaping policy, or exploring new horizons, staying informed and flexible can help you navigate a landscape defined by uncertainty and opportunity.
Reference(s):
IMF slashes global growth forecast amid rising trade tensions
cgtn.com
