Sam Ikeotuonye
Lagos — The International Monetary Fund, IMF, has projected global growth at 3 percent for 2025 and 3.1 percent in 2026, an upward revision from its April 2025 World Economic Outlook, WEO.
The projection, contained in IMF’s revised World Economic Outlook released on Tuesday, July 29, reflects front-loading ahead of tariffs, lower effective tariff rates, better financial conditions, and fiscal expansion in some major jurisdictions, according to the Fund.
It said global inflation is expected to fall, but US inflation is predicted to stay above target, maintaining that downside risks from potentially higher tariffs, elevated uncertainty, and geopolitical tensions persist.
Restoring confidence, predictability, and sustainability, it stated, remains a key policy priority.
The World Economic Outlook is a survey of prospects and policies by the IMF staff, usually published twice a year, with updates in between.
It presents analyses and projections of the world economy in the near and medium term, which are integral elements of the IMF’s surveillance of economic developments and policies in its member countries and of the global economic system.
They consider issues affecting advanced, emerging and developing economies, and address topics of pressing current interest.
In the earlier Outlook released on April 22, 2025, the IMF reported “a slowdown in global growth as downside risks intensify,” noting that “while policy shifts unfold and uncertainties reach new highs, policies need to be calibrated to rebalance growth-inflation trade-offs, rebuild buffers, and reinvigorate medium-term growth, thereby reducing both internal and external imbalances.”
It stated that policies that promote healthy aging, bridge gender disparities, and enhance the alignment of migrants’ skills with local labour market demands can play a crucial role in countering slow economic growth and fiscal pressures, especially when coupled with infrastructure investment.
