The International Monetary Fund (IMF) announced that while it believes the global fight against inflation is nearing completion, significant risks remain due to high debt levels in many countries.
Despite these challenges, the United States is emerging as a clear leader among advanced economies, driven by robust investment and productivity gains.
In its latest World Economic Outlook released Tuesday, the IMF projected that global inflation will fall to 3.5 percent by the end of 2025, a significant decrease from the 9.4 percent peak seen in 2022. This positive trend is largely attributed to effective monetary policies implemented by central banks, which have managed to raise interest rates without pushing economies into recession.
However, skepticism lingers regarding the IMF’s initial forecasts. In the 2021 Outlook, the IMF projected that “headline inflation will likely return to pre-pandemic levels by mid-2022.” This prediction proved to be overly optimistic, as inflation surged instead, highlighting the complexities of the economic landscape.