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IMF raises global growth outlook

  • The IMF has raised its global growth outlook to 3.3% for 2025 and 2026, driven primarily by India and China's economies, which are expected to grow at 6.5% and 4.6%, respectively.
  • The United States is predicted to grow by 2.7% under the new administration, which is an increase of 0.5% from previous expectations, according to the IMF.
  • Growth in the European Union, especially in Germany, is forecasted to be slower due to high energy prices and potential US import tariffs, with Germany expected to see only 0.3% growth.
  • The IMF warns that excessive deregulation in the US could lead to financial vulnerabilities, as stated by Chief Economist Pierre-Olivier Gourinchas.
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Global inflation expected to fall to 4.2% in 2025 and 3.5% in 2026 — The IMF predicts that the Eurozone will grow 1% in 2025 from 1.2% in the previous report

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Germany's misery is widening the economic gap between the eurozone and the USA. According to the IMF, this gap has structural reasons - and is unlikely to disappear any time soon.

·Zürich, Switzerland
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Xinhua broke the news in China on Friday, January 17, 2025.
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