The world economy has not fallen apart in 2025, which may be either a relief or a worry, depending on how you look at it.

For emerging market and developing economies, the IMF raised its forecast to 4.1 percent from 3.7 percent for 2025 and to 4 percent from 3.9 percent for 2026. However, risks to the global outlook remain tilted to the downside, with potential tariff rebounds and elevated uncertainty threatening to weigh on economic activity.

The International Monetary Fund (IMF) has predicted stronger global economic growth than it forecast in April due to some US tariffs on goods being softened. It predicted growth of 3% in 2025 and 3.1% in 2026,