IMF Projects Global Economic Growth in 2025 to Remain Below Pre-Pandemic Levels

Economics & Macro

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Adi Ahdiat 06/02/2025 11:22 WIB

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The IMF projects global economic growth to reach 3.3% in 2025. This figure remains below the pre-pandemic average growth rate of 3.7% during the 2000–2019 period.

Global Economic Growth Projection (2000-2025)*

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Global Economic Growth Projection (2000-2025)*

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In its January 2025 edition of the *World Economic Outlook* (WEO), the International Monetary Fund (IMF) projects global economic growth to reach 3.3% this year.

While slightly higher than in 2024, the IMF considers this year's projection still lower than the average economic growth rate during the pre-COVID-19 pandemic era.

"Global economic growth is projected at 3.3% in 2025, below the historical average of 3.7% for 2000–2019," the IMF stated in its report.

The IMF assesses that the outlook for global economic growth in 2025 has not changed significantly from last year. However, advanced economies are generally predicted to strengthen, while developing economies are likely to stagnate.

The IMF predicts that the economic growth of advanced economies will increase from 1.7% in 2024 to 1.9% in 2025.

Meanwhile, the growth of developing economies this year is estimated at 4.2%, the same as last year.

The IMF also sees various risks that could burden the economic growth of many countries.

"There are short-term risks that tend to benefit the United States but harm most other countries amid rising policy uncertainty," the IMF said in its report.

"For example, the intensification of protectionist policies in the form of new trade tariffs. This can exacerbate trade tensions, reduce investment, lower market efficiency, distort trade flows, and disrupt supply chains. Growth can decline in both the short and medium term, with varying degrees across countries," it continued.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."