Global growth is projected to be stable at 3.3% this year and next, but there is uncertainty and risk to the forecast the IMF said in its World Economic Outlook (WEO) report Friday (January 17, 2025) in Washington, DC.

“In our latest projections, global growth remains steady at 3.3% this year and next, broadly aligned with world potential growth. Inflation is declining to 4.2% this year and 3.5% next year in a return to central bank targets. This means that the very large global disruptions that started with the pandemic, the war in Ukraine and triggered the largest inflation surge in 40 years are behind us. This is the end of a cycle, and the beginning of a new one,” said IMF Chief Economist Pierre-Olivier Gourinchas.

But with geopolitical conflict, increasing trade tensions and elections looming and leadership changes in major economies around the world there is considerable uncertainty.