IMF cuts growth forecasts for most countries in wake of century-high US tariffs

Andrea Shalal - Reuters - 22/04
The International Monetary Fund slashed its forecasts for growth in the United States, China and most countries, citing the impact of U.S. tariffs now at 100-year highs, and warning that further trade tensions would slow growth further.
  • IMF sees global growth of 2.8% in 2025, down from 3.3% in January forecast
  • IMF chief economist says new era ushered in by trade reset
  • Escalating trade tensions could further dampen growth
  • Click here for a table of the IMF's economic projections for 2025 and 2026 with comparisons to prior WEO forecasts
WASHINGTON, April 22 (Reuters) - The International Monetary Fund on Tuesday slashed its forecasts for growth in the United States, China and most countries, citing the impact of U.S. tariffs now at 100-year highs, and warning that further trade tensions would slow growth further.
The IMF released an update to its World Economic Outlook compiled in just 10 days after U.S. President Donald Trump announced universal tariffs on nearly all trading partners and higher rates - currently suspended - on many countries.

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It cut its forecast for global growth by 0.5 percentage point to 2.8% for 2025, and by 0.3 percentage point to 3% from its January forecast that growth would reach 3.3% in both years.
It said inflation was expected to decline more slowly than expected in January, given the impact of tariffs, reaching 4.3% in 2025 and 3.6% in 2026, with "notable" upward revisions for the U.S. and other advanced economies.
The IMF called the report a "reference forecast" based on developments through April 4, citing the extreme complexity and fluidity of the current moment.
"We are entering a new era as the global economic system that has operated for the last 80 years is being reset," IMF chief economist Pierre-Olivier Gourinchas told reporters.
The IMF said the swift escalation of trade tensions and "extremely high levels" of uncertainty about future policies would have a significant impact on global economic activity.
"It's quite significant and it's hitting all the regions of the world. We're seeing lower growth in the U.S., lower growth in the euro area, lower growth in China, lower growth in other parts of the world," Gourinchas told Reuters...
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