Summary:
The IMF has upgraded growth projections for emerging economies to 4.1% (from 3.7%), led by China’s expected growth of 4.8%. This is due to stronger-than-expected performance in early 2025 and a drop in U.S.–China tariffs. Revised global growth forecasts now stand at 3.0% for 2025 and 3.1% for 2026. However, stability risks remain due to fragile trade policy and signs of slowing in economies like Russia and South Korea.
Key Points:
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Forecast raised for emerging markets.
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China leads with a projected 4.8% growth rate.
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Global growth uptick modest and cautious.
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Tariff uncertainty remains a critical risk.
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Some economies face downgrade risk (e.g. Russia, South Korea).
Why It Matters:
Indicates relative resilience among EMs but warns of the fragility of recovery amidst trade volatility.
Source Links:
Source: Reuters
