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” by the White House had spurred a recovery in global trade and a broader economic expansion, though US policies remain “highly uncertain” and risks to growth “firmly on the downside”.
The IMF chief economist, Pierre-Olivier Gourinchas, upgraded the forecast for global growth in 2025 to 3% from an April estimate of 2.8%. The outlook for 2026 was upgraded from 3% to 3.1%. The global economy grew by 3.3% in 2024.
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