The International Monetary Fund on Tuesday slashed its forecast for global growth this year and warned of an increase in global financial stability risks, citing the effect of US President Donald Trump’s new tariff policies on the world economy.
The IMF’s projections, which incorporate some but not all tariff measures introduced this year, see the global economy growing by 2.8 percent this year, 0.5 percentage points lower than the previous World Economic Outlook (WEO) forecast in January.
Global growth is then forecast to hit 3.0 percent next year, down 0.3 percentage points from January.
“We are entering a new era as the global economic system that has operated for the last 80 years is being reset,” IMF chief economist Pierre-Olivier Gourinchas told reporters in Washington on Tuesday.
“If sustained, increasing trade tensions and uncertainty will slow global growth,” he added, noting that the recent US tariff announcements had more than halved the Fund’s outlook for global trade growth this year.বিস্তারিত