IMF World Economic Outlook Update
In News
What Happened
Why It Matters
Background
History & Context
What Changed
- ▶
BEFORE: Previous reports cited persistent inflation and central bank tightening as the primary downside risks to global growth. NOW: The January 2025 update heavily emphasizes geopolitical fragmentation and new tariff-induced trade disruptions as the dominant risks.
- ▶
BEFORE: India experienced an exceptionally high post-pandemic economic growth surge, recording over 8% in FY24. NOW: The IMF projects a normalization of growth to a more sustainable, yet robust, 6.5% for both FY25 and FY26.
- ▶
BEFORE: Global trade policy was largely anchored by multilateralism and World Trade Organization (WTO) frameworks. NOW: Economic projections are increasingly dampened by protectionist policies, cross-border tariffs, and inward-looking policy divergences.
Prelims Angle
NCERT Connection
Practice Questions
Q1
Correct Statement(s)Which of the following statements is/are correct regarding the World Economic Outlook (WEO) and the International Monetary Fund (IMF)? 1. The World Economic Outlook is a flagship report published by the World Bank. 2. Special Drawing Rights (SDRs) are an international reserve asset created by the IMF to supplement the official reserves of its member countries.