Global Economy: Holding up

• Real gross domestic product (GDP) growth in the United States (US) eased sharply to an annualized 0.7% in the fourth quarter of 2025 from 4.4% in the third quarter
• Real GDP growth in the Eurozone was revised down to 0.2% on-quarter (seasonally adjusted) in the fourth quarter of 2025 from 0.3%
• Japan’s headline inflation dropped to 1.5% in January, below the Bank of Japan’s target of 2% for the first time since March 2022, from 2.1% in December

In calendar 2025, major global economies such as the US, the United Kingdom (UK), the Eurozone and China beat growth forecasts of March that year. Earlier in January 2026, the International Monetary Fund had forecast global growth at 3.3% for 2025, same as in 2024.

However, the final quarter of 2025 saw growth softening, including in the US, Eurozone and China, while Japan saw an improvement.