Saudi Press

Saudi Arabia and the world
Friday, Aug 22, 2025

World growth 'slowest since financial crisis'

World growth 'slowest since financial crisis'

The International Monetary Fund warns against "policy mistakes" such as tariffs and a no-deal Brexit.

The global economy is growing at its slowest pace since the financial crisis, the International Monetary Fund (IMF) has said.

The fund said world growth would hit just 3% this year - down from its July forecast of 3.2% and a sharp slowdown from just two years ago.

The IMF blamed the slowdown on trade fights, Brexit uncertainty and other geopolitical crises.

It added there is an "urgent" need for leaders to de-escalate the tensions.

"The global outlook remains precarious," the international lending body said in its annual report. "At 3% growth, there is no room for policy mistakes."


Global downgrade

The IMF, which downgraded its forecasts for most of the world, predicted that growth in advanced economies would slow from 2.3% in 2018 to 1.7% this year.

In the US, where an economic boost from a 2017 tax cut has faded, the fund expects growth to pull back from 2.9% last year to 2.4% in 2019.

In the UK, where Brexit-related worries have hurt investment, growth is forecast at 1.2% for 2019, down from 1.4% last year.

In Germany, which is reeling from a downturn in car production, growth is predicted at 0.5%, down from 1.5% in 2018.

China's economic growth is expected to slow from 6.6% to 6.1%. It has been hit by efforts to rein in risky debt and the trade war with the US, which led the IMF to shave almost a percentage point off global growth.

Thus far, the IMF said central banks have managed to blunt the impact of the slowdown with tools such as low interest rates. Without those stimulus policies, it estimates that the growth rate would have been 0.5 percentage points lower this year.

"With central banks having to spend limited ammunition to offset policy mistakes, they may have little left when the economy is in a tougher spot," the fund said.


Downside risks

The World Trade Organization also recently downgraded its economic outlook, citing trade wars, Brexit and other factors.

The IMF said the global economy could grow faster in 2020, at 3.4%. However, it warned that risks are "skewed to the downside", noting that the pickup depends on improvements in India, as well as several economies currently under severe strain, such as Argentina, Turkey and Iran.

"Policy missteps at this juncture, such as a no-deal Brexit or a further deepening of trade disputes, could severely undermine sentiment, growth, and job creation," it said. "The foremost priority, in many cases, is to remove policy-induced uncertainty or threats to growth."

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Cristiano Ronaldo Makes Surprise Stop at New Hong Kong Museum
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
High-Stakes Trump-Putin Summit on Ukraine Underway in Alaska
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
Sam Altman challenges Elon Musk with plans for Neuralink rival
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Nine people have been hospitalized and dozens of salmonella cases have been reported after an outbreak of infections linked to certain brands of pistachios and pistachio-containing products, according to the Public Health Agency of Canada
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
Tariffs, AI, and the Shifting U.S. Macro Landscape: Navigating a New Economic Regime
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
OpenAI’s Bold Bet: Teaching AI to Think, Not Just Chat
BP’s Largest Oil and Gas Find in 25 Years Uncovered Offshore Brazil
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Germany’s Economic Breakdown and the Return of Militarization: From Industrial Collapse to a New Offensive Strategy
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Russia Formally Recognizes Taliban Government in Afghanistan
×