The International Monetary Fund (IMF) has revised its economic growth projections, predicting a 3% increase in global growth for 2026, a slight decrease from the 3.3% projected in January. The organization cited the rapid escalation of trade tensions and extremely high levels of political uncertainty as factors likely to significantly impact global economic activity.
In advanced economies, the IMF forecasts a growth rate of 1.4% in 2025. For the United States specifically, growth is expected to slow to 1.8%, which is 0.9 percentage points lower than the January 2025 World Economic Outlook (WEO) update. This decline is attributed to increased political uncertainty, trade tensions, and reduced demand dynamics.
Growth within the Eurozone is anticipated to slow, with projections indicating an increase of 0.8%, down by 0.2 percentage points from January’s estimates.
Emerging markets and developing economies are expected to experience a slowdown in growth, with rates projected to decrease to 3.7% in 2025 and 3.9% in 2026. Significant downturns are anticipated for countries heavily impacted by recent trade measures, such as China.
