What is the IMF’s revised global growth forecast for 2025 as per IMF’s April 2025 Global Financial Stability Report?

Correct option is B

The correct answer is (b) 2.8%

• According to the International Monetary Fund (IMF)’s April 2025 Global Financial Stability Report, the revised global growth forecast for 2025 is 2.8%.

• This adjustment reflects the impact of various factors, including increased trade tensions, particularly due to tariffs, policy uncertainty, and disruptions in global supply chains.

• The IMF also highlighted that these factors have contributed to a slower-than-expected global economic recovery, impacting long-term growth prospects.

• While the IMF's global growth forecast for 2026 expects a modest rebound to 3%, it still falls below the long-term average of 3.7%.

Information Booster:
• IMF (International Monetary Fund): Founded in 1944 during the Bretton Woods Conference, the IMF is an international financial institution that aims to promote global economic stability, growth, and financial cooperation among its member countries. It currently has 190 member countries.
• Purpose of IMF: The IMF’s primary roles include monitoring global economic developments, providing policy advice, financial assistance, and fostering international monetary cooperation to prevent financial crises.
• Global Growth Forecast: The IMF regularly publishes economic forecasts and outlooks for member countries and the global economy, offering insights on potential risks, growth rates, and necessary policy responses.
• Significance: The IMF’s growth forecasts influence economic policy decisions, global trade negotiations, and investment patterns worldwide. A 2.8% global growth rate indicates challenges for both developed and emerging economies, reflecting broader slowdown risks.
• IMF's Influence: The IMF’s influence extends to its ability to offer financial assistance to countries facing balance-of-payment crises and to help stabilize their economies with lending programs and economic reform advice.
• Historical Impact: The IMF played a significant role in addressing the post-World War II economic reconstruction and was instrumental in tackling financial crises like the 1997 Asian Financial Crisis and the 2008 Global Financial Crisis.