(ECNS) -- The International Monetary Fund (IMF) slightly raised global growth projections for this year and next in an updated version of its World Economic Outlook on Tuesday.
The report highlights that major global economies continue to face significant uncertainty, exacerbated by U.S. trade policies, leaving the world economy in a relatively fragile state.
According to the IMF, the global economy is expected to grow by 3 percent in 2025 and 3.1 percent in 2026, representing upward revisions of 0.2 and 0.1 percentage points, respectively, compared to its April forecast.
The report attributes this modest upgrade in part to importers stockpiling goods in anticipation of potential new U.S. tariffs, which has distorted trade flows and temporarily boosted activity. Nevertheless, the IMF warned that expectations of steep tariff hikes have distorted markets and that policy uncertainty poses a risk to global stability in the years ahead.
For emerging markets and developing economies, the IMF revised up projected growth rates by 0.4 percentage points to 4.1 percent in 2025, and by 0.1 points to 4 percent in 2026. For advanced economies, growth was also adjusted upward by 0.1 percentage points, to 1.5 percent in 2025 and 1.6 percent in 2026.
Despite these improved figures, the IMF warned of downside risks, including uncertain trade policies, rising geopolitical tensions, and increased fiscal vulnerabilities. The organization stressed the importance of transparent and stable trade frameworks to reduce global uncertainty.
"Pragmatic cooperation is essential," the IMF said, calling on all economies to reduce trade and investment barriers in order to support long-term, stable growth.
（By Evelyn）
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