Reuters, Washington, April 22 Citing the impact of U.S. tariffs, which are now at 100-year highs, and cautioning that growing trade tensions will further hamper GDP, the International Monetary Fund cut its growth projections for the United States, China, and the majority of other nations on Tuesday. Ten days after U.S. President Donald Trump proposed universal tariffs on almost all trading partners and higher rates—currently suspended—on several nations, the IMF presented an update to its World Economic Outlook.
In January, it predicted that global growth would reach 3.3% in both years, but it lowered that prediction by 0.3 percentage points to 3% and by 0.5 percentage points to 2.8% for 2025. With “notable” upward adjustments for the U.S. and other advanced countries, it stated that inflation will drop more slowly than anticipated in January due to the impact of tariffs, hitting 4.3% in 2025 and 3.6% in 2026.
Given the high complexity and fluidity of the current moment, the IMF referred to the study as a “reference forecast” based on happenings through April 4. Pierre-Olivier Gourinchas, chief economist at the IMF, told reporters, “The global economic system that has functioned for the last 80 years is being reset as we enter a new era.”
Also Read:
India Temporarily Raises The Duty on Select Steel Imports by 12%
Ajman Bank Reports a 24% Increase in Q1 2025 Profit Before Taxes of Dh145 Million
