World Economic Situation and Prospects 2025 September Update

The global economy is expected to experience subdued growth in the coming months amid a challenging trade environment and heightened macroeconomic uncertainties. The world economy is projected to grow by 2.5 per cent in both 2025 and 2026 — below the 2.8 per cent recorded in 2024 and the pre-pandemic average of 3.2 per cent (2010–2019). The 2025 forecast has been raised by 0.1 percentage points since May, while the 2026 outlook is unchanged, with both remaining well below expectations at the start of the year. The modest upgrade to the 2025 outlook reflects stronger-than expected frontloading of economic activity ahead of new U.S. tariffs, lower effective U.S. tariff rates than initially announced in April, and pro-growth policies in several large economies.