IMF expects global economy to grow by 3.3% this year

IMF Forecasts 3.3% Global Economic Growth in 2025

Dubai: The International Monetary Fund (IMF) expects the global economy to grow by 3.3% in 2025, before declining to 3% over the next five years, which is lower than the historical average.

The Middle East and North Africa region’s economies are expected to grow by 3.6% in 2025, driven by a recovery in oil production and a decline in regional conflicts.

This came during the activities of the 9th Arab Public Finance Forum, which was launched during the preliminary day of the World Government Summit in Dubai, where Kristalina Georgieva, Managing Director of the International Monetary Fund, confirmed that policymakers succeeded in reducing inflation rates in some countries, but inflation has risen again in other countries, which may lead to a disparity in interest rates and an increase in borrowing costs for emerging markets and developing economies.

She pointed out that global public debt could exceed 100% of GDP by 2030, warning that some countries in the region face debt levels exceeding 70% of GDP, exposing them to the risks of low growth and high debt burdens. It highlighted the challenges facing governments, including creating job opportunities, strengthening social safety nets, adapting to national security and reconstruction requirements, as well as building resilience to natural disasters and supporting economic diversification.

She discussed technological transformations, stressing that the digital revolution, especially in the field of artificial intelligence, will reshape the labor market and the economy in the coming years, which requires adapting to these changes to enhance economic growth.

For his part, the Director of the Middle East and Central Asia Department at the International Monetary Fund pointed to the disparity in growth rates between emerging economies and middle-income countries, as some countries face a noticeable slowdown due to financial and geopolitical pressures, stressing the continued role of the International Monetary Fund in providing financial and technical support to developing countries, and promoting structural reforms to stimulate sustainable growth.