The International Monetary Fund has raised its global growth forecast to three percent for 2025 and three point one percent for 2026, citing support from a weaker U.S. dollar and less-than-expected economic disruption from U.S. tariffs.

The IMF upgraded its projection for the United States to one point nine percent in 2025 and two percent in 2026.

China’s growth was revised to four point eight percent, while India remains the fastest-growing major economy at six point four percent.

The updated outlook follows stronger-than-expected trade and production data, with companies globally stockpiling ahead of expected tariff hikes.

The softer dollar has also eased debt pressure for emerging markets with high exposure to U.S.-denominated borrowing.

The IMF noted that while the short-term effects of tariff actions were less severe than anticipated, risks remain for medium-term stability as pre-tariff inventory buildups unwind.

The United Kingdom was forecast to be the third-fastest-growing G7 economy over the next year, following the United States and Canada.