At the World Economic Forum’s Annual Meeting in Davos, global economic outlooks for 2025 and beyond take center stage. According to the latest World Economic Outlook from the International Monetary Fund (IMF), global growth is forecast to remain steady at 3.3% in 2025, with projections extending into 2026. This figure is slightly below the historical average growth rate of 3.7% recorded between 2000 and 2019.
Inflation is also expected to see a decline, with a predicted rate of 4.2% for 2025, easing further to 3.5% by 2026. This reduction in inflation is anticipated to pave the way for the normalization of monetary policies by central banks. Pierre-Olivier Gourinchas, IMF Economic Councillor, noted that these trends signal the conclusion of the global economic disruptions that have defined recent years.
The World Economic Forum’s Chief Economists Outlook reflects similar findings, suggesting that while global growth expectations remain subdued, there are significant regional differences. The United States is likely to experience a short-term economic boost, but the outlook for other major regions, including Europe and China, is less optimistic in the near term.
At the heart of discussions at Davos is the pressing need to “revive and reimagine growth.” Leaders at the forum are focused on identifying new sources of economic expansion, aiming to build more resilient and robust economies in the face of shifting global dynamics. Sessions throughout the meeting will explore strategies for fostering growth in this evolving global economy.
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