Global Economic Growth Faces Downturn

The International Monetary Fund (IMF) announced a significant revision to its global growth forecast for 2025, lowering it to 2.8% from the previously estimated 3.3%. This adjustment reflects the IMF's concern over the current economic climate, which it describes as being in a state of "reset." The organization attributes this slowdown in part to the wide-ranging tariffs imposed by the United States.

Regional Growth Projections Adjusted

According to the IMF, the U.S. economy is now expected to grow by 1.8% this year, a decrease of 0.9 percentage points from earlier estimates. The tariffs are responsible for 0.4 percentage points of this reduction. Meanwhile, China's growth forecast has been adjusted downward by 0.6 percentage points to 4%, and the Eurozone's growth is now projected at 0.8%, down by 0.2 percentage points.

Future Economic Prospects

The IMF warns of potential further tightening of financial conditions and more severe tests for financial markets. However, it also highlights a silver lining: growth prospects could "immediately improve" if countries adopt a more lenient trade policy stance and work towards new trade agreements.