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IMF updates growth forecast as Trump's tariff wars ease
The Guardian
|July 30, 2025
Global growth will be stronger than previously expected this year after Donald Trump scaled back his most extreme tariff threats, the International Monetary Fund said as it upgraded the economic outlook for 2025.
The Washington-based organisation said a "de-escalation in tariffs" had spurred a recovery in global trade and a broader economic expansion, though US policies remain "highly uncertain" and risks to growth remain "firmly on the downside".
The IMF chief economist, Pierre-Olivier Gourinchas, upgraded a forecast for global growth in 2025 to 3% from an estimate in April of 2.8%. The outlook for 2026 was upgraded from 3% to 3.1%. The global economy grew by 3.3% in 2024.
Most regions benefited from the more benign outlook, including Britain, which is expected to grow by 1.2% this year - 0.1 percentage points higher than in the IMF's April outlook.
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