ATLANTA, GEORGIA (Chad Archey, Energy Analytics Institute, 22.Apr.2025) — The global economy has appeared to have stabilized, with steady yet underwhelming growth rates, according to the International Monetary Fund (IMF). This, after enduring a prolonged and unprecedented series of shocks.
The agency warned however that the landscape has changed as governments around the world reorder policy priorities amid increased uncertainties.
As such, the IMF has revised downwards its forecasts for global growth compared to its Jan. 2025 World Economic Outlook (WEO) Update. The new lower forecasts reflected “effective tariff rates to levels not seen in a century and a highly unpredictable environment. Global headline inflation is expected to decline at a slightly slower pace than what was expected in Jan,” the IMF said on 22 Apr. 2025 in a statement on its website.
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These uncertainties come amid rising trade tensions and financial market adjustments.
The IMF believes “divergent and swiftly changing policy positions or deteriorating sentiment could lead to even tighter global financial conditions. Ratcheting up a trade war and heightened trade policy uncertainty may further hinder both short-term and long-term growth prospects. Scaling back international cooperation could jeopardize progress toward a more resilient global economy.”
The IMF has suggested that countries take efforts to work together and constructively to promote a stable and predictable trade environment and to facilitate international cooperation. This, while addressing policy gaps and structural imbalances at home.
These actions are necessary as countries seek internal and external economic stability.
“To stimulate growth and ease fiscal pressures, policies that promote healthy aging and enhance labor force participation among older individuals and women could be implemented. Additionally, productivity growth can be fostered with better integration of migrants and refugees and mitigation of skill mismatches,” the IMF said.
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By Chad Archey reporting from Atlanta. © 2025 Energy Analytics Institute (EAI). All Rights Reserved.
