According to the IMF's January 2025 World Economic Outlook Update, what is the projected global growth rate for 2025?

Correct option is B

The correct answer is: (b) 3.3%

Explanation:

• According to the International Monetary Fund (IMF) World Economic Outlook Update released in January 2025, the projected global growth rate for 2025 is 3.3%.

• This forecast remains unchanged from the October 2024 projections.

• The 3.3% rate reflects moderate global recovery, but is still below the pre-pandemic average of 3.7% (2000–2019).

• IMF attributes this modest growth to tight monetary policies, geopolitical tensions, and sluggish global trade.

• Inflation is expected to decline globally, but remains a concern for many economies.

Information Booster:

• Global growth for 2024 was projected at 3.1%, while 2025 is estimated at 3.3%.

• Advanced economies like the U.S. show resilience, while Europe and some EMDEs are facing slowdowns.

• Emerging Markets and Developing Economies (EMDEs) are expected to see stronger growth than advanced economies.

• The IMF highlights risks like geopolitical instability, trade fragmentation, and climate change.

• India’s projected growth rate for 2025 was revised upwards due to robust domestic demand.