IMF: global economy is entering a recession - two challenging years ahead
According to the updated report International Monetary Fund (IMF), global economy slows down faster than expected.
The Fund predicts that in 2025 global GDP growth will be only about 2.5%, and in 2026 may decrease to 2,3% - These are the lowest figures for the last decade, excluding the pandemic period.
The main reasons for this decline are as follows Growth of protectionism, geopolitical tensions, including the war in Ukraine, and higher borrowing costs for most countries.
Economic risks
The IMF warns that Trade barriers between major economies, The rise of the US, China and the EU is beginning to affect international trade.
In addition, Increased debt burden in developing countries can lead to a new wave of defaults and budget crises.
«The sustainability of the global economy depends on coordination between the leading powers. Without this, we risk a prolonged recession,» said IMF Managing Director Kristalina Georgieva.
Prospects for Ukraine
The report also states that Ukraine's economy shows better dynamics, than projected in previous estimates, thanks to international assistance, military production, and a gradual recovery in exports.
However, the IMF warns: Instability in the energy sector and ongoing hostilities remain key risks to growth in 2025.
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