Tue, 22 Apr 2025

Tue, 22 Apr 2025 Global growth forecast slashed by IMF over tariff impact

The US suffers the biggest downgrade to growth among advanced economies, in the influential International Monetary Fund's latest forecast.

* US economic growth forecast downgraded by IMF to 1.8% this year, from 2.7% in January, due to uncertainty caused by trade tariffs.
* Global economy expected to grow at 2.8%, down from 3.3% previously, and 3.0% in 2026.
* UK growth forecast cut to 1.1% this year, but stronger than Germany, France, and Italy.
* Inflation in the UK expected to be highest among advanced economies at 3.1%.
* IMF chief economist Pierre-Olivier Gourinchas says global economy "still bears significant scars" from past four years' shocks.
* US President Donald Trump's tariff policies seen as a major factor behind growth downgrades.
* 40% probability of US recession this year, up from 25% in October last year.
* China expected to grow at 4% this year, down from 4.6%.
* IMF predicts UK will grow by 1.4% next year.
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