Global Growth Slows, Inflation Eases, and Uncertainty Remains
The global growth economy is expected to grow at 3.3% in 2025 and 2026, falling below the 2000–19 average of 3.7%. While the U.S. outlook has improved, growth in other major economies has weakened, keeping the overall forecast unchanged from the October 2024 World Economic Outlook (WEO).
Inflation is expected to decline, reaching 4.2% in 2025 and 3.5% in 2026, with advanced economies stabilizing faster than emerging markets.
However, economic risks remain high. The U.S. may experience stronger-than-expected growth, while other countries face uncertainty due to policy challenges. Any disruption to inflation control could delay monetary policy easing, affecting financial stability and fiscal sustainability.
To navigate these risks, governments must focus on balancing inflation control with economic growth, strengthening financial reserves, and implementing long-term structural reforms. Stronger international cooperation will also be crucial for sustained global stability.
