The International Monetary Fund (IMF) has projected a sluggish growth outlook for the world’s 20 largest economies over the medium term. In a report directed to the G20 nations, the IMF anticipates a growth rate of just 2.9 percent by 2030. This subdued forecast is attributed to rising protectionist policies and increasing global uncertainty. Notably, this represents the weakest projection issued by the IMF since the global financial crisis of 2009.
The report indicates a significant divergence in growth prospects between advanced and emerging economies within the G20. Advanced economies, including the United States, United Kingdom, Australia, Canada, France, Germany, Italy, Japan, and South Korea, are expected to experience a growth rate of only 1.4 percent by 2030.
In contrast, emerging market economies within the G20, such as Argentina, Brazil, China, India, Indonesia, Mexico, Russia, Saudi Arabia, South Africa, and Turkey, are projected to achieve a stronger growth rate of 3.9 percent.
The IMF also forecasts that the overall output of the G20 will grow by 3.2 percent in 2025, a slight decrease from the 3.3 percent recorded last year. A further slowdown is expected in 2026, with growth projected at 3 percent.
The report identifies several global challenges that are weighing on growth prospects, including increasing pressures on public finances and the aging populations in advanced economies.
The IMF has urged G20 nations to enhance cooperation in order to reduce trade barriers and mitigate the uncertainty that is dampening growth. The organization specifically called on member states to adopt “clear and transparent roadmaps for trade policies.”
The G20 leaders are scheduled to convene for their summit in South Africa starting next Saturday.
