The International Monetary Fund has updated its predictions for global economic growth, giving a rosier outlook, now projecting 3% growth for 2025 and 3.1% for 2026. But it warns that a breakdown in trade talks or renewed international protectionism could impact those numbers.
00:00The International Monetary Fund has updated its predictions for global growth, giving a rosier outlook.
00:06It now projects 3% growth for 2025 and 3.1% for 2026, but those numbers could change.
00:16Projections remain about 0.2 percentage point below our pre-April 2nd forecasts,
00:23indicating that the trade tensions are hurting the global economy.
00:28Lower tariff rates compared to those announced in April and a weaker U.S. dollar are the main drivers for the slightly improved numbers,
00:36and global inflation continues to fall.
00:38It is projected to reach 4.2% for 2025 and keep dropping to 3.6% in 2026,
00:47but the IMF warns that a breakdown in trade talks or renewed protectionism could weaken international growth and fuel inflation in some countries.
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