IMF's October 2025 World Economic Outlook Signals Slowing Global Growth Amid Rising Risks

The International Monetary Fund’s October 2025 World Economic Outlook reports a modest upward revision in global growth projections but underscores an overall slowdown and persistent challenges. According to the IMF, global growth is forecast to decline from 3.3% in 2024 to 3.2% in 2025, with a further dip to 3.1% expected in 2026. Advanced economies are projected to grow at around 1.5%, while emerging and developing countries may achieve just above 4% growth.

Inflation is expected to decline globally but remains unusually high in some countries, notably the United States, which could complicate monetary policy efforts. The report highlights substantial risks including prolonged economic uncertainty, intensifying protectionism, labor supply shocks, and potential financial market corrections that could further impede growth prospects.

Emerging markets are noted for their resilience, attributed to improved fiscal and monetary policies that have lessened dependence on currency interventions. However, the IMF warns that the increasingly common use of industrial policy requires cautious management to avoid inefficiencies and negative impacts on productivity and public finances.

Policymakers are urged to restore economic confidence through credible, transparent, and sustainable policy measures, including fiscal adjustments and structural reforms. This, the IMF suggests, is crucial to rebuilding fiscal buffers and supporting a more stable economic environment amid a fragmented and protectionist global landscape.