Global economic growth is projected to remain steady at 3.3% in both 2025 and 2026, below the historical average of 3.7% from 2000 to 2019, according to recent forecasts. While the outlook for the United States has improved, downward revisions in other major economies have offset this gain.
Global inflation is expected to drop to 4.2% in 2025 and further to 3.5% in 2026, with advanced economies achieving inflation targets earlier than emerging markets and developing economies.
The near-term outlook varies by region. The United States could see stronger-than-expected growth, while other countries face risks from policy uncertainty and potential disruptions to disinflation efforts. Long-term risks include challenges to fiscal stability and financial systems.
Experts emphasize the need for balanced policy approaches to manage inflation, support economic activity, and implement structural reforms to boost growth and strengthen global cooperation.
