US EditionUS, Global Economic Outlook Worsens in the Face of Trump's Tariffs, IMF Says
- The International Monetary Fund lowered its global growth forecast for 2025 to 2.8% during the Spring Meetings in Washington.
- This downgrade follows increased trade tensions caused by new U.S. Tariffs on Chinese imports, which now total 145%, and policy uncertainties.
- The IMF also cut the 2025 U.S. Growth outlook to 1.8%, lowered eurozone growth to 0.8%, and forecast China’s growth at 4.0%, warning inflation and trade disruptions may weaken demand.
- The IMF raised the chance of a U.S. Recession this year from 25% to 40% and expects inflation to rise to about 3.0% by year-end amid higher debt servicing costs and a stronger dollar.
- The IMF emphasized the need for stronger public investment and macroeconomic reforms, while the White House expressed cautious optimism about progress toward new trade deals.
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