IMF raises outlook for World and Iran economic growth
The International Monetary Fund (IMF) has upgraded its global economic growth forecast for 2025, citing softened US tariffs, while also revising its outlook for Iran upward to 0.6% – double its April projection of 0.3%.
The IMF predicted stronger global economic growth than it forecast in April in part due to some US tariffs on goods being softened.
The fund has estimated its forecast for Iran's real GDP growth in 2025 at 0.6%, revised upward from the 0.3% rate it projected in April, ISNA reported.
It expects Iran's economic growth rate to remain at 1.1% in 2026.
A surge in US imports as firms tried to beat impending higher import taxes and actions by some governments to boost growth bumped up the fund’s latest forecast, BBC reported.
However, higher tariffs and more uncertainty could lead to weaker growth and slower economic activity, the IMF warned.
Meanwhile, UK growth is predicted to be 1.2% this year, and 1.4% in 2026, unchanged from revised forecasts set out in May.
The UK is set to be the third fastest growing economy out the world's so-called most advanced economies this year and the next, after US and Canada.
The IMF, which is a group of 190 countries that work together to try to stabilize the global economy, said the upgrade to its global predictions included trade "front-loading" in recent months – referring to the rush of imports into the US.
It forecast global growth of 3% in 2025 and 3.1% in 2026, up from 2.8% and 3% in its April report.
However, that is still below the 3.3% rate it had projected for both years in January, prior to US President Donald Trump taking office, and the pre-pandemic historical average of 3.7%.
American firms rushed products into the country earlier this year to try to get ahead of new taxes on imports pledged by Trump.
The IMF said that this created risks that could add to any future economic shocks, including companies, having too much stock, making future imports less necessary.
Also, firms may have to pay more to store goods, and there was also a risk of items becoming obsolete, it said.