IMF releases October 2025 World Economic Outlook
In News
What Happened
Why It Matters
Background
History & Context
What Changed
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BEFORE: Earlier outlooks often anticipated a gradual stabilization of the global economy post-pandemic. NOW: The October 2025 WEO explicitly forecasts a slowdown, with global growth expectations dipping to 3.2% in 2025 and 3.1% in 2026.
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BEFORE: Advanced economies were historically seen as the stable drivers of global economic recovery. NOW: The report highlights a stark divergence, noting sluggish growth and policy uncertainty in advanced economies compared to the resilience of emerging markets.
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BEFORE: Global trade paradigms generally favoured expansive integration and tariff reductions. NOW: The macroeconomic environment is increasingly burdened by high trade tariffs and protectionist policies, suppressing overall global prospects.
Prelims Angle
NCERT Connection
Practice Questions
Q1
Correct Statement(s)Which of the following statements is/are correct regarding the World Economic Outlook (WEO)? 1. It is a flagship report published biannually by the World Bank to assess global economic developments. 2. The October 2025 report highlighted a divergence in growth trends, noting sluggishness in advanced economies alongside resilience in emerging markets like India.