#globaleconomy

The Traders Can Understand the Situation of Global economic trends

The global economy is currently experiencing a mix of trends. On one hand, global growth is stabilizing, with inflation returning closer to targets and monetary easing supporting activity. This is expected to lead to a moderate global expansion of 2.7% in 2025-26.¹

However, growth prospects appear insufficient to offset the damage done by several years of negative shocks. Heightened policy uncertainty and adverse trade policy shifts represent key downside risks. Other risks include escalating geopolitical tensions, higher inflation, and more extreme weather events.

In terms of regional outlooks, growth is projected to moderate in East Asia and Pacific, and in Europe and Central Asia, while a pickup is anticipated in Latin America and the Caribbean, the Middle East and North Africa, South Asia, and Sub-Saharan Africa.

The World Economic Outlook Update reports that global growth is projected at 3.3% both in 2025 and 2026, broadly unchanged from the October 2024 forecast. However, the near-term outlook is characterized by divergent paths, while medium-term risks to growth are tilted to the downside.²

Overall, the global economy is facing a complex and uncertain situation, with both positive and negative trends influencing growth prospects.