Global growth is expected to increase slightly this year while remaining stuck below its pre-pandemic average, the IMF said Friday, flagging the growing economic divide between the United States and European countries.

The World Bank on Thursday warned that U.S. across-the-board tariffs of 10% could reduce already lackluster global economic growth of 2.7% in 2025 by 0.3 percentage point if America's trading partners retaliate with tariffs of their own.

Global growth is expected to hold at an annual rate of 2.7 percent for the next two years, the same as in 2024, the bank’s economists said.

The United Nations financial agency updated its projections for full-year U.S. growth in 2025 to 2.7%, up from 2.2%.

The International Monetary Fund upgraded its global growth forecast for this year, spurred by stronger-than-expected US demand and slowing inflation worldwide that will let central banks continue to cut interest rates.

The International Monetary Fund (IMF), on Friday projected that the Indian economy will grow at 6.5 per cent in the year 2025. Interestingly, the growth rate of the Indian economy is the highest among its global peers.