Given the recent spate of aid cuts for developing countries and rising tariffs, IMF downgraded its global growth forecast from 3.3 per cent (that was announced in January 2025) to 2.8 per cent for 2025.
IMF also projected that global public debt will increase by 2.8 per cent, reaching 95.1 per cent of global gross domestic product (GDP) in 2025. This is projected to reach 100 per cent of global GDP by 2030.
IMF’s Managing Director Kristalina Georgieva acknowledged the uncertainty around the global economy, while hoping that trade negotiations can provide some relief on the tariffs question. Indermit Gill, chief economist at the World Bank, highlighted how trade uncertainties are compounding rising debt and sluggish growth.
The…
