Washington: The International Monetary Fund (IMF) on Tuesday raised its global economic growth forecast for 2025 to 3.2% from 3%, while keeping it stable at 3.1% for 2026.

According to Anadolu Agency, an IMF report noted that despite the forecast's increase from the previous report, global economic growth is projected to slow from 3.3% in 2024 to 3.2% in 2025 and 3.1% in 2026 amid "policy shifts and complex forces."

The report highlighted that in April, the United States announced sweeping tariffs, shaking global trade norms. It indicated that given the complexity and fluidity of the situation, the April report had offered a range of estimates for the growth downgrade, from modest to significant, depending on the severity of the trade shock.

The fund emphasized that trade policy uncertainty remains high due to the lack of clear, transparent, and lasting agreements among trading partners. The focus has shifted from the final tariff level to its impact on prices, investment, and consumption.

The report noted that while the impact of protectionist trade measures on economic activity and prices has been limited thus far, growth remained resilient in the first half of the year. However, there are increasing signs that the negative impacts of protectionist measures are beginning to be felt, with trade policy uncertainty expected to remain high throughout 2025 and 2026.

The IMF also adjusted its forecasts for specific economies. The US economic growth forecast was raised from 1.9% to 2% this year and from 2% to 2.1% for 2026. For the eurozone economy, the forecast was raised from 1% to 1.2% this year, while next year's forecast was revised down from 1.2% to 1.1%. Germany's growth forecast was raised to 0.2% for this year and remained stable at 0.9% for 2026.

The UK economy's growth forecast was raised from 1.2% to 1.3% this year, while it was lowered from 1.4% to 1.3% next year. Within the emerging economies group, China's growth forecast remained at 4.8% this year and 4.2% next year, while India's growth forecast for this year was raised to 6.6% and lowered to 6.2% next year.

For Trkiye, the economic growth forecast was raised to 3.5% in 2025 and to 3.7% next year. The report also stated that the average inflation forecast for Trkiye was 34.9% for this year and 24.7% for next year, with unemployment rate expectations at 8.3% for both this year and next year.