IMF Says Global Economy Is Slowing but Avoiding Recession in Latest Outlook Update

The International Monetary Fund on Thursday presented its latest World Economic Outlook update, saying the global economy remains resilient but is expanding at a slower and more uneven pace than earlier expected. In a press conference, IMF officials said growth is being held back by tighter financial conditions, weak productivity, trade fragmentation and persistent geopolitical uncertainty, even as inflation continues to ease in many economies.

The Fund said the disinflation process is progressing, but not uniformly across countries, leaving central banks with limited room to ease policy aggressively. It warned that the balance of risks remains tilted to the downside, with renewed energy shocks, supply disruptions and financial volatility capable of derailing the recovery.

The update pointed to a mixed picture across regions. Advanced economies are facing softer demand and slower momentum, while emerging markets continue to show more resilience but remain vulnerable to capital outflows, debt pressures and weaker external demand. The IMF also highlighted uneven recovery in China and the strain on economies exposed to high borrowing costs.

Officials said governments should focus on restoring fiscal buffers, protecting vulnerable households and advancing structural reforms to lift long-term growth. They also urged policymakers to avoid measures that could deepen trade barriers or fragment the global economy further.

The press conference underscored the IMF’s view that the world economy is not in crisis, but is entering a more fragile phase in which modest growth, sticky uncertainty and policy constraints could make the outlook more volatile in the months ahead.