IMF raises global growth forecast for 2025 to 3 pct

The International Monetary Fund (IMF) on Tuesday lifted its global growth forecast for 2025 to 3 percent, 0.2 percentage points higher than its projection in April, according to an update to its World Economic Outlook.

Emerging markets and developing economies are now expected to grow by 4.1 percent in 2025, 0.4 percentage points higher than the April forecast, according to the latest update.

Meanwhile, the growth projection for advanced economies has been revised upward to 1.5 percent, compared to the earlier estimate of 1.4 percent.

In particular, growth forecasts for the United States, the Euro Area, Japan, Britain, Canada, China, India, Brazil, Mexico, Saudi Arabia and Nigeria were revised upward.

The broad-based upward revision for the year reflects "stronger-than-expected front-loading in anticipation of higher tariffs; lower average effective U.S. tariff rates than announced in April; an improvement in financial conditions, including due to a weaker U.S. dollar; and fiscal expansion in some major jurisdictions," the update said.

The global economy has continued to hold steady, but economic activity points to tariff distortions rather than underlying robustness, the IMF said.

"This resilience is welcome, but it is also tenuous. While the trade shock could turn out to be less severe than initially feared, it is still sizeable, and evidence is mounting that it is hurting the global economy," said IMF Chief Economist Pierre-Olivier Gourinchas.

Economic policy uncertainty is predicted to remain elevated this year and next, according to the report, whose projections are based on current trade policies.

Overall, risks to the latest outlook remain tilted to the downside, considering the precarious equilibrium of trade policy stances, possible escalation of geopolitical tensions, potentially more salient fiscal vulnerabilities and other factors, the update said.

Without comprehensive agreements, ongoing trade uncertainties could increasingly weigh on investment and economic activity, warned Gourinchas.

"Countries should reduce policy-induced uncertainty by promoting clear and transparent trade frameworks," the report said. "Pragmatic cooperation is paramount in instances in which some rules of the international trading system, in their current form, may not be functioning as intended."

IMF raises global growth forecast for 2025 to 3 pct

IMF raises global growth forecast for 2025 to 3 pct

Fuzhou, the capital of southeast China's Fujian Province, launched a cross-strait cultural carnival during the May Day holiday, attracting visitors from both sides of the Taiwan Strait to revel in the festivities.

The carnival unfolded at a historical and cultural block in Lianjiang County, Fuzhou, where an array of performances highlighted local culture and the deep ties across the Strait, serving as a rich cultural feast for holidaymakers.

"Strolling through the ancient streets, with the old buildings on both sides and intangible heritage performances all around, it feels like traveling back in time. It also reminds you that people on both sides of the Strait share the same roots and the same cultural lineage," said Zhang Chuanzhen, a Taiwan compatriot.

In addition to stage performances, the block also featured intangible cultural heritage displays, cultural and creative markets, and hands-on craft experience activities. The immersive and interactive setting invited visitors to explore the history, take in the scenery, and savor the culture.

"We are dedicated to allowing everyone to experience the breadth and depth of Chinese culture, and to strengthen the sense of shared cultural identity across the Strait. Going forward, Lianjiang County will continue to innovate forms of cultural exchanges and build a bridge for heart-to-heart communication between compatriots on both sides of the Strait, especially among the younger generations," said Ren Yong, director of the Lianjiang County Cultural Center.

Fujian holds May Day holiday cultural carnival to entertain visitors across Taiwan Strait