Washington, July 31 (V7N) — Contrary to early fears, the global economy has not unraveled in 2025. According to the International Monetary Fund (IMF), the world's economic activity remains steady, with growth and inflation largely in line with recent trends, despite turbulence from U.S. policy shifts and trade disruptions earlier this year.
 
In its midyear economic outlook released on Tuesday, the IMF revised global GDP forecasts slightly upward from its April estimates, projecting 3.0% growth in 2025 and 3.1% in 2026. While these figures are marginally slower than the 2024 growth rate, they match the average of the past decade—suggesting overall resilience in the global economic framework.
 
The IMF noted that most major economies saw slight upward revisions in their growth forecasts. The only exception was Japan, where 2026 expectations were reduced marginally. Analysts highlight that such minor changes are well within the standard margin of error and do not signal any major downturn.
 
Earlier this year, financial markets experienced brief volatility amid rising trade tensions, especially related to new U.S. tariffs. However, the IMF’s updated view downplays fears of a global recession. In April, economists and investors feared significant contraction, but the recent data show that the global economy has weathered the storm better than anticipated.
 
The Fund acknowledged ongoing concerns, including inflationary pressures and subdued economic activity in certain regions. Still, its latest outlook underscores a theme of stability rather than crisis.
 
In short, while 2025 began with economic uncertainty, the year is on track to maintain moderate global expansion—an outcome the IMF calls "unspectacular but solid."
 
News Source: Reuters.........
 
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