IMF revises world economic growth upwards for 2025

FMI revê em alta crescimento da economia mundial em 2025

The International Monetary Fund (IMF) has slightly revised upwards the growth of the world economy to 3.3% in 2025, but warns of the risks that high inflation will keep interest rates high for longer.

For this year, the institution maintains its forecast of global economic growth of 3.2, according to the update to the World Economic Outlook.

As for inflation, the persistence of high prices in services "complicates the normalization of monetary policy," at a time when the US Federal Reserve has yet to cut interest rates, unlike the European Central Bank.

"The upside risks to inflation have increased, raising the prospect of higher interest rates for an even longer period, in the context of escalating trade tensions and rising political uncertainty," says the IMF report quoted by some international press.

"To manage these risks and preserve growth, the policy mix must be sequenced carefully to achieve price stability and restore diminished buffers," the report reads.

The IMF points out that economic activity is evolving in different ways among the major economies: in the first quarter of the year, there were negative surprises in the United States and Japan, but in Europe and China there are already some signs of recovery.

The institution led by Kristalina Georgieva predicts that the US economy will grow by 2.6 percent in 2024, a downward revision from April's figures, while maintaining the forecast for the Eurozone at 0.9.

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