IMF Raises 2025 Global Growth Forecast to 3.2 Pct

Washington, Oct. 14 (Jiji Press)–The International Monetary Fund on Tuesday raised its forecast for global economic growth in 2025 to 3.2 pct, up 0.2 percentage point from its July estimate. The upward revision reflects the smaller-than-expected impact of U.S. President Donald Trump’s tariff measures on trade. Meanwhile, the IMF kept its 2026 global growth projection unchanged at 3.1 pct. The figures, however, are significantly below the average of 3.7 pct in the years before the COVID-19 pandemic. In its latest Global Economic Outlook report, the IMF said, “Downside risks to growth have receded slightly relative to April but remain elevated, while upside risks to inflation are broadly the same.” The fund suggested that, if the United States raises its tariffs again, global growth in 2026 could fall by 0.3 percentage point. By country, Japan’s economy is projected to grow 1.1 pct in 2025, 0.4 point higher than the previous forecast, backed by “an expected pickup in real wage growth supporting private consumption.” In 2026, Japan’s growth is forecast to decelerate to 0.6 pct, due to a decline in overseas demand and the Bank of Japan’s gradual interest rate hikes. For the United States, the IMF raised its 2025 and 2026 growth forecasts by 0.1 point each, to 2.0 pct and 2.1 pct, respectively, taking into account lower effective tariff rates, fiscal expansion and easier financial conditions. China’s growth forecasts were kept unchanged at 4.8 pct for 2025 and 4.2 pct for 2026. The euro area is expected to grow 1.2 pct in 2025 and 1.1 pct in 2026. END [Copyright The Jiji Press, Ltd.]