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2w ago

IMF Cuts Global Growth Forecast to 2.8% Following U.S. Tariff Escalation

The IMF warns of a significant economic slowdown as trade uncertainty rises, with the WTO projecting century-low trade growth and calls for U.S. withdrawal from multilateral institutions gaining traction.

Cargo containers sit at the port in Buenos Aires, Argentina, Monday, April 14, 2025. (AP Photo/Natacha Pisarenko)
A general view from Tokyo Tower is seen of the city of Tokyo, Japan, August 6, 2021. Picture taken August 6, 2021. REUTERS/Clodagh Kilcoyne
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Overview

  • The IMF's latest World Economic Outlook revises global GDP growth for 2025 to 2.8%, down 0.5 percentage points from January projections.
  • New U.S. tariffs introduced on April 2 have raised global trade barriers to historic highs, contributing to a projected 0.2% growth in global goods trade, the lowest in a century.
  • South Korea's growth forecast has been halved to 1% for 2025, reflecting the uneven regional impacts of escalating trade tensions.
  • The Heritage Foundation's 'Project 2025' urges U.S. withdrawal from the IMF and World Bank, questioning the future of multilateral financial cooperation.
  • Finance and business leaders, including Gulf delegations, are meeting in Washington, D.C., to address the economic challenges and strained global financial systems.