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IMF Predicts Global Growth Stability but Highlights Economic Uncertainty in 2025

Incoming Trump administration's trade policies and regional economic divergences contribute to global challenges, with India expected to see weaker growth.

  • IMF Managing Director Kristalina Georgieva forecasts steady global growth in 2025 but warns of significant economic uncertainty driven by U.S. trade policies under President-elect Donald Trump.
  • India's economic growth is anticipated to weaken slightly in 2025, though specific reasons for this projection were not detailed by the IMF chief.
  • The Trump administration plans to implement new tariffs on countries like China, Canada, and Mexico, raising concerns over potential disruptions to global supply chains and economic growth.
  • Global disinflation is expected to continue, with advanced economies nearing inflation targets faster than emerging markets, according to the IMF.
  • Higher long-term interest rates, influenced by trade policy uncertainty, are expected to impact financing costs, particularly for emerging and low-income economies.
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