Why in the News?
The International Monetary Fund (IMF) has released the July 2025 update to its World Economic Outlook (WEO).
About World Economic Outlook (WEO):
- Published By: International Monetary Fund (IMF)
- Frequency: Biannual (April, October) + updates in January and July
- Purpose: Provides global forecasts on GDP, inflation, trade, and policy trends
- Data Sources: IMF consultations with member nations and internal models
- Audience: Governments, institutions, investors, researchers
- July 2025 Update Title: “Global Economy: Tenuous Resilience amid Persistent Uncertainty”
Key Highlights – July 2025 Update:
- Global Growth Projections:
-
- 2025: 3.0% (↑ from 2.8% in April)
- 2026: 3.1% (↑ from 3.0%)
- Despite multiple shocks—COVID-19, the Ukraine war, tariff increases—global growth continues.
However, resilience remains fragile due to:- US–China tariff tensions and rising protectionism
- Conflicts in Ukraine and the Middle East
- High public debt in advanced economies is raising interest rates
- Country Forecasts for 2025: United States: 1.9%, China: 4.8% (↑ from 4.0%), Euro Area: 1.0%, Germany: 0.1%, United Kingdom: 1.2%, Japan: 0.7%, Russia: 0.9%, Pakistan: 2.7%.
India – The Bright Spot:
- Growth Rate: 2023: 9.2%;Â 2024: 6.5%;Â 2025: 6.4% (strongest among major economies).
- Drivers of Growth:
- Robust domestic demand
- Strong services and manufacturing output
- Effective inflation and monetary policy management
- Strategic Position:
- Set to overtake several advanced economies in GDP size
- Viewed globally as a “bright spot” amid persistent uncertainties
| [UPSC 2014] Which of the following organisations brings out the publication known as ‘World Economic Outlook?
Options: (a) The International Monetary Fund * (b)The United Nations Development Programme (c) The World Economic Forum (d) The World Bank |
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