Fri, 17 Jan 2025

IMF warns on Trump's plans but upgrades UK outlook

Trump's policies could benefit the US, but not the rest of the world, the IMF says

* IMF upgrades UK growth forecast to 1.6% for this year, up from 1.5%.
* IMF warns that Trump's economic plans could lead to higher inflation and trade tensions.
* Tariffs on imports to the US could make it more expensive for companies to sell goods in the world's largest economy.
* The IMF also says such policies could set the scene for an inflationary boom followed by a bust, and weaken US Treasury bonds as a safe bet.
* UK economy is expected to perform better than European economies such as Germany, France and Italy over the next two years.
* Chancellor Rachel Reeves highlights that the UK was the only G7 economy apart from the US to have its growth forecast upgraded for 2025.
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