IMF slashes global growth forecast over tariffs

The Washington-based fund cut its forecast for global trade growth this year by 1.5 percentage points

The world’s growth prospects would improve immediately if trade tensions calmed and long-standing complaints about non-tariff barriers and trade-distorting measures by some countries were addressed, the IMF said. Picture: Kent Nishimura/Bloomberg

The International Monetary Fund sharply lowered its forecasts for world growth for this year and next, warning the outlook could deteriorate further as US President Donald Trump’s tariffs spark a global trade war.

The IMF cut its projection for global output growth this year to 2.8% in its updated World Economic Outlook, released on Tuesday. That is lower than its January forecast of 3.3%, and would be the slowest expansion of gross domestic product since the covid pandemic in 2020.