Britain set for minor boost as world economy growth forecast upgraded despite Trump tariffs
The impact of Trump’s tariffs on world economy revealed
- The International Monetary Fund (IMF) has upgraded its global economic growth forecasts, attributing the improved outlook to the waning impact of trade tariffs and a surge in US imports.
- Global growth is now projected at 3 per cent for this year and 3.1 per cent for next year, an increase from previous expectations.
- The UK's growth prediction for 2025 received a modest upgrade of 0.1 per cent, with growth expected to be 1.2 per cent this year and 1.4 per cent in 2026.
- The IMF noted that the improved outlook was driven by countries “front-loading” goods shipments to the US ahead of planned tariff increases, alongside subsequent tariff reductions and new trade agreements.
- Despite the positive revisions, the IMF cautioned about potential risks including a rebound in effective tariff rates, elevated uncertainty, and the impact of the Middle East conflict on global shipping and commodity prices.