After two years of turbulence, the global economy is showing early signs of recovery as inflation rates begin to stabilize and consumer confidence improves, according to the latest report by the International Monetary Fund (IMF).
The IMF projects global GDP growth to reach 3.1% in 2025, slightly higher than last year’s 2.8%. Major economies such as the United States, the European Union, and China have all contributed to the uptick, driven by easing supply chain disruptions, lower energy prices, and resilient consumer spending.
“Inflation is finally cooling down across advanced and emerging economies, giving central banks more room to adjust interest rates cautiously,” said Kristalina Georgieva, IMF Managing Director. “While risks remain, including geopolitical tensions and climate-related challenges, the outlook is more optimistic compared to previous forecasts.”
Stock markets responded positively to the report, with the Dow Jones, FTSE 100, and Nikkei 225 posting moderate gains. Meanwhile, several central banks are signaling a possible shift from aggressive rate hikes to more balanced monetary policies in the coming months.
However, the IMF also warned that developing countries still face challenges, including debt pressure and limited fiscal space. Collaborative efforts from international organizations and stronger trade relations are expected to play a crucial role in sustaining this global recovery.
