IMF flags slower 2025 global growth as fiscal constraints mount worldwide

According to the International Monetary Fund’s latest outlook, world GDP growth will ease to 3.2% in 2025 from 3.3% a year earlier. Weak consumer spending, persistent inflation, and fiscal consolidation across developed markets are weighing on expansion. Emerging economies, particularly India and Southeast Asia, remain bright spots due to robust demand and investment inflows. The IMF advised nations to prioritize targeted fiscal policies and productivity-enhancing reforms. Economists warned prolonged debt servicing burdens could hinder medium-term recovery in key advanced economies like Japan and the Eurozone.