Global Growth Slows Amid Policy Uncertainty
John Kelly Marah
Global growth is projected at 3.3% in both 2025 and 2026, remaining below the 2000–2019 average of 3.7%. While the U.S. outlook improves, downward revisions in other major economies offset gains, keeping the forecast largely unchanged from the October 2024 World Economic Outlook (WEO). Inflation continues to ease, with global headline inflation expected to fall to 4.2% in 2025 and 3.5% in 2026, returning to target levels sooner in advanced economies than in emerging markets. However, risks remain tilted to the downside. While the U.S. economy could see stronger-than-expected growth, other nations face heightened policy uncertainty. Disruptions to monetary easing and fiscal stability could derail progress. Policymakers must balance inflation control with real economic activity, rebuild financial buffers, and drive long-term growth through structural reforms and stronger global cooperation.
