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Economic outlook for 2026
Farmer's Weekly
|December 19-26, 2025
The global economy is in a state of continuous change with massive uncertainties. The same is true for South Africa where very low growth is expected in 2026, says Dr Koos Coetzee.
In its October 2025 World Economic Outlook, the International Monetary Fund (IMF) states that the global economy is in a state of flux or continuous change.
Several major countries introduced policy measures. US President Donald Trump's tariff announcements in February 2025 shocked the global economy. Since then, there were some tempering of tariffs and other trade measures.
The sharp decrease in international development aid and restrictions on immigration, combined with the more restricted trade environment, resulted in lower economic growth and expected growth.
GLOBAL ECONOMIC GROWTH
The IMF forecasts global economic growth of 3,2% in 2025 and 3,1% in 2026, down from the 3,3% in 2024. Advanced economies will grow by 1,5% in 2025/26, while developing economies will achieve 4% growth.
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