The global economy could take a hit! Its growth is in question! Something must be done!
According to Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), global economic growth in 2025 will be just 3.3%. That is very low! This figure is below the average for the past few decades. Naturally, this is raising concerns worldwide. The outlook for global GDP looks more pessimistic than promising.
IMF calculations suggest that in 2026, global economic growth will be about the same as this year. "We project global growth will remain steady at 3.3 percent this year and next, broadly aligned with potential growth that has substantially weakened since before the pandemic," Georgieva emphasized during a meeting of finance ministers and central bank heads from the G20 countries.
However, she does see some hope for inflationary pressures easing in the medium term. This could happen as labor market tensions decrease and energy prices go down. "This will help bring inflation down," the IMF director concluded.
