IMF trims 2025 global growth outlook to 3.2% citing tight policy and labor strain

The IMF’s October World Economic Outlook projects global GDP growth at 3.2% in 2025 and 3.1% in 2026 as tight labor markets and restrictive monetary policy limit output in advanced economies. Emerging Asia remains a bright spot with India and Indonesia driving momentum. The Fund expects gradual disinflation but warns of slower trade growth and weaker productivity. It urged governments to rebuild fiscal buffers and invest in supply-chain resilience to sustain long-term expansion.