Inflation Trends: Easing Pressures with Pockets of Persistence

The IMF’s outlook projected that global inflation would gradually decline through 2025, approaching central bank targets by 2025–26 . In fact, the WEO Update sees worldwide headline inflation falling to 4.2% in 2025 (from higher levels in 2023–24) . Thus far, this disinflation trend is materializing, though not without some bumps.

Global Economic Growth: Divergent Outcomes

IMF growth projections for 2024–2026 (global, advanced, and emerging economies). In the January 2025 update, the IMF projected steady but sub-par global growth of about 3.3% in 2025, with advanced economies around 1.9% and emerging economies ~4.2% .