IMF Warns of Global Economic Slowdown Due to Trade Tensions

The International Monetary Fund (IMF) has issued a stark warning about the adverse effects of escalating trade tensions on the global economy, reducing its growth forecast to 2.8% from the previously estimated 3%.

India's growth outlook has also been adjusted downward to 6.2% from 6.5%, despite robust private consumption, particularly in rural areas. The IMF cites "intensifying downside risks" as a major concern for the global economic landscape.

Key Concerns Highlighted by the IMF

The agency's latest World Economic Outlook report emphasizes the potential for broader financial instability, including damage to the international monetary system, due to "ratcheting up a trade war" and elevated trade policy uncertainty.

Significant downward revisions for 2025 growth forecasts have been made for Canada, Japan, the UK, and the US, while Spain's outlook has been revised upward.