IMF upgrades outlook for global economy, citing less-than-expected damage from Trump’s trade wars

The International Monetary Fund is upgrading the economic outlook for the United States and the world this year and next because President Donald Trump’s protectionist trade policies have so far proven less damaging than expected.
The IMF now forecasts 3% growth for the global economy this year. That is down from 3.3% in 2024 but an improvement on the 2.8% it had forecast for 2025 back in April. The 191-country lender, which works to promote growth, stabilize the world financial system and reduce poverty, expects world growth to come in at 3.1% next year, up a tick from the 3% it had forecast three months ago.
Trump’s decision on April 2 – “Liberation Day,’’ the president called it – to impose taxes of 10% or more on U.S. imports from most of the world’s countries had been expected to be a bigger drag on global growth.
But the damage was limited, the IMF said.
“This modest decline in trade tensions, however fragile, has contributed to the resilience of the global economy so far,” IMF chief economist Pierre-Olivier Gourinchas said at a press conference yesterday.
Leave a reply
You must be logged in to post a comment.




















