IMF Says 2025 Global Economic Growth Only Reaches 2.8 Percent

Illustration (Photo: Doc. ANTARA)

JAKARTA - The International Monetary Fund (IMF) noted that global economic growth is expected to slow down.

In the April 2025 edition of the World Economic Outlook (WEO) report, it is estimated that global economic growth will slow down for 2025 to 2.8 percent, down from the previous estimate of 3.3 percent.

This decline is reflected in almost all countries and reflects the immediate impact of the new trade policies imposed, as well as indirect impacts through global supply chain disruptions, rising market uncertainty, and deteriorating market sentiment.

For information, United States President Donald Trump imposed a reciprocal tariff on April 2.

The IMF states that the impact of tariffs on short-term economic growth varies in each country depending on trade relations, industrial sector composition, domestic policy responses, and trade diversification opportunities.

"Fiscal support in some areas (for example, China and the euro region) can reduce some of the negative impacts on growth," the IMF wrote in its report, Wednesday, April 23,

The countries directly involved in this tariff policy experienced a decline in growth.

However, the overflow effect of the policy also has an impact on the global economy at large, adding to the burden on post-pandemic recovery efforts.

The rate of effective US tariffs has pushed the United States' rate to its highest level in the past century.

In response, major trading partner countries, including China, implemented a retaliatory policy that exacerbated trade tensions

Economic growth in developed countries is expected to decline from 1.8 percent in 2024 to only 1.4 percent in 2025.

Meanwhile, in 2025, US economic growth will only be 1.8 percent. The euro area of economic growth will only reach 0.8 percent.

Meanwhile, developing countries Economic growth is projected to be only 3.7 percent by 2025.