From www.aigroup.com.au: The International Monetary Fund has downgraded its global GDP growth forecast to 2.8% for 2025, significantly impacted by US tariffs and economic disruptions, with advanced economies lagging behind.

The growth forecast for Australia is revised to 1.6% in 2025, down from 2.1%, with inflation projected to decline to 2.5% before rising to 3.5% in 2026.

Inflation rates in the UK and US have been increased due to persistent price dynamics and recent tariffs, while the euro area’s forecast remains unchanged.