IMF Forecasts 3.3% Global Economic Growth in 2025
Dubai, February 10 ,the International Monetary Fund (IMF) has projected that the global economy will grow by 3.3% in 2025, before slowing to 3% over the next five years, which is below the historical average.
The IMF also expects the economies of the Middle East and North Africa (MENA) region to grow by 3.6% in 2025, driven by a recovery in oil production and a decline in regional conflicts.
These insights were shared during the 9th Public Finance Forum for Arab Countries, held as part of the pre-summit activities of the World Government Summit in Dubai. Kristalina Georgieva, Managing Director of the IMF, highlighted that policymakers have successfully reduced inflation in some countries. However, inflation has rebounded in others, which could lead to disparities in interest rates and increased borrowing costs for emerging markets and developing economies.
Georgieva warned that global public debt could exceed 100% of GDP by 2030, noting that some countries in the region face debt levels exceeding 70% of GDP, exposing them to risks of low growth and high debt burdens.
She also addressed key challenges for governments, including job creation, strengthening social safety nets, adapting to national security needs and reconstruction efforts, enhancing disaster resilience, and supporting economic diversification.
Regarding technological advancements, she emphasized that the digital revolution, particularly in artificial intelligence (AI), will reshape labor markets and economies in the coming years. This transformation requires adaptation to sustain economic growth.
