The global economy appears to have stabilised, showing steady and well above recession levels, yet underwhelming growth rates, amid escalating trade-war tensions fuelled by US-imposed tariffs and global uncertainty.

In the recently released IMF World Economic Outlook April 2025, the global growth forecast has been marked downwards by 0.5 percentage points to 2.8 per cent for 2025 and by 0.3 percentage points to 3 per cent for 2026 compared to this year’s January edition.

The report indicates that economic growth in the United States, the world’s largest economy, is projected to slow to 1.8 per cent, reflecting a decrease of 0.9 percentage points from the earlier year’s forecast, primarily driven by increased policy uncertainty, ongoing trade tensions, and weakening demand momentum.

The growth of the euro area, currently at 0.8 per cent, is expected to decelerate by 0.2 percentage points, whereas the emerging markets and developing economies are anticipated to experience a slowdown, with a projected growth rate of 3.7 per cent in 2025.

Source: Indianexpress