The IMF has revised its global economic growth forecast to 3% for 2025, driven by a series of trade breakthroughs and a rollback of earlier U.S. tariff threats. Global optimism is returning, albeit cautiously.
The 2026 forecast now stands at 3.1%, suggesting continued expansion. This comes as a follow-up to the better-than-expected 3.3% growth in 2024, a signal of recovering strength in global demand.
UK officials welcomed a revised forecast of 1.2%, with Chancellor Rachel Reeves underscoring the importance of forward-looking fiscal investments in national infrastructure.
Reduced tensions with China, the EU, and Japan—paired with reciprocal agreements on energy and exports—have cooled markets and restored faith in international economic cooperation.