World Economic Outlook, October 2025: Global Economy in Flux, Prospects Remain Dim

The latest WEO reports slowing global growth and declining global inflation. Policies need to be recalibrated, paying particular attention to improving policy frameworks and carefully considering the opportunity costs and trade-offs associated with different options.

Volume/Issue: Volume 2025 Issue 002

Publication date: October 2025

ISBN: 9798229023948

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Topics covered in this book

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Exports and Imports , Finance , Inflation , Economics- Macroeconomics , Taxation - General , Industries - Energy , Natural Resources , global growth , inflation , economic projection , risks , policy frameworks , industrial policy Chapter 1 , inflation expectation , State aid , recipient firm , emerging market resilience , leveraged firm , EU government , increasing returns to scale , inflation surge , corporate bond issuer , bond Index , opportunity cost , Emerging and frontier financial markets , Foreign exchange intervention , Global financial crisis of 2008-2009 , Global , Europe , risk asset valuation , asset valuation pressure , market development , trade policy uncertainty , Tariffs , Current account balance , Middle East and Central Asia , Caribbean , Sub-Saharan Africa

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Summary

The latest World Economic Outlook reports a slowdown in global growth with risks remaining tilted to the downside. As new policies slowly come to focus, adjustment to the emerging landscape should be aided with credible, predictable, sustainable actions. Stronger policy frameworks enhance the implementation and credibility of monetary and fiscal policies. Industrial policy can spur higher productivity in targeted sectors, but requires careful targeting to avoid inefficiencies and large fiscal costs, strong institutions, complementary structural reforms, and sound macroeconomic policy