In its latest monthly forecast update, the International Monetary Fund (IMF) is optimistic on the U.S. economy for 2025.
Shared Jan. 17, IMF’s report projects that U.S. real GDP in 2024 was 2.8%. It expects the U.S. to have 2.7% growth in 2025 — a sharp upward revision from 2.2% in IMF’s previous forecasts. Further ahead, the group expects 2.1% U.S. growth in 2026.
That’s far ahead of the 1.7% 2024 growth IMF has for all advanced economies, with projects for 1.9% growth in 2025 and 1.8% growth in 2026. Canada is projected to have steady growth of 2.0% in both 2025 and 2026.
Overall, IMF projects that global growth is expected to remain stable at 3.3% in both 2024 and 2025, which aligns with the potential growth rate — historical average of 3.7% from 2000 to 2019 — that has significantly weakened since before the pandemic.
Meanwhile, IMF projects that global inflation will decrease to 4.2% in 2025 and to 3.5% in 2026.
The group noted a growing disparity between the growth rate for
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The global growth outlook remains largely consistent with the IMF’s previous report in October 2024. However, the report highlights that disparities between countries are widening.
For emerging markets and developing economies, IMF expects that 2024 growth was 4.2% and will hold steady at 4.2% in 2025 and 4.3% in 2026. Within that, it has Mexico at 1.8% in 2024; 1.4% in 2025 and 2.0% in 2026.
See IMF’s full world economic growth projections table below.
To read more about the IMF report, click here.
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