IMF Revises Global Growth Forecast Downward

The International Monetary Fund (IMF) announced a significant revision to its global growth forecast for 2025, lowering expectations to 2.8% from the previously estimated 3.3%. This adjustment reflects the ongoing challenges facing the global economy, with the IMF highlighting the impact of wide-ranging tariffs imposed by the United States as a primary concern.

Regional Growth Estimates Adjusted

According to the IMF, the US economy is now expected to grow by just 1.8% this year, a sharp decline of 0.9 percentage points from earlier predictions. China's growth forecast has also been trimmed by 0.6 percentage points to 4%, while the Eurozone's outlook has been slightly reduced to 0.8% growth.

Future Prospects and Recommendations

The IMF warned of potential further tightening in financial conditions and more severe tests for financial markets. However, it also noted that growth prospects could "immediately improve" if countries adopt a more relaxed trade policy stance and work towards new trade agreements.