IMF estimates that the world economy in 2025 will grow by 3.3%

In 2024 and 2025, the global economy is likely to grow continuously. The International Monetary Fund (IMF) forecasted the global economic growth rate at 3.2% in 2024 and adjusted to 3. 3% in 2025, the major contributors to this growth are from many regions around the world, reflecting the overall global economic recovery, making risk assets like the stock market attractive. Today, ACU PAY will introduce them to everyone.

China’s economy remains a major driver with the GDP growth forecast revised up from 4.6% to 5.0% in 2024, and is expected to grow 4.5% in 2025, supported by strong domestic consumption and exports, particularly technology products, but may be pressured by a slowdown in the real estate sector and weakening confidence in both households and businesses.

Europe is also recovering. After bottoming out, service growth and real wage increases will help stimulate the economy and support consumption next year. IMF forecasts that Europe’s GDP will grow by 0.9% in 2024 and 1.5% in 2025, showing signs of slowing exports and domestic purchasing power.

The US economy is expected to slow slightly as the labor market overheats and government spending tends to decline in line with central bank tightening monetary policy. IMF forecasts US GDP growth of 1.9%.

Although the global economy seems to be improving, supported by domestic spending, many central banks plan to cut their policy rates steadily, still, the IMF warns that inflation remains a key concern. Despite recent declines in global inflation, there are still some sectors such as the service sector where inflation remains high, and the impact of geopolitical risks and political uncertainties may cause inflation to return to the target range later than expected and return to normal levels by the end of 2025.

Investment in the recovering economy and interest rate cuts in many countries should provide good opportunities for investors, particularly in the stock market. However, risks remain, in terms of monetary policy geopolitical factors, and international tensions. Therefore, diversifying investments in funds that focus on global diversity is the most appropriate strategy at this time.

Asia, particularly China and India, remains a key driver of the global economy, as both countries play a leading role in technology exports and other developing countries are under pressure from the strengthening of the dollar, which may lead to economic growth in these countries.

In conclusion, the global economy over the next two years will likely grow further, but beware of inflation, market volatility, and geopolitical risks that may affect the economy in the long run.