Washington, May 9, 2025 – The International Monetary Fund (IMF) has predicted a decline in global headline inflation at a slightly slower pace than anticipated in January
The IMF said this in a statement on the April 2025 World Economic Outlook (WEO) Update released on Friday.
It said forecasts for global growth had been revised markedly down compared with the January 2025 World Economic Outlook (WEO) Update to reflect effective tariff rates at levels not seen in a century and a highly unpredictable environment.
The IMF said intensifying downside risks dominate the current outlook amid escalating trade tensions and financial market adjustments.
“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,” it said..
The IMF said current developments around the world could jeopardize progress toward more resilient global economy.
It said this could arise from the scaling back of international cooperation arising the imposition of unanticipated tariffs
The IMF advised countries to work constructively to promote a stable and predictable trade environment and to facilitate international cooperation, while addressing policy gaps and structural imbalances at home.
It said this would help secure both internal and external economic stability, while policies that promote healthy aging and enhance labor force participation among older individuals and women could be implemented to stimulate growth and ease fiscal pressures,
“Additionally, productivity growth can be fostered with better integration of migrants and refugees and mitigation of skill mismatches,” it said.
