The International Monetary Fund (IMF) has reduced its global economic growth forecast for 2025 to 2.8%, down from the previously projected 3.3%. This adjustment reflects the impact of U.S. tariffs, now at their highest levels in a century, which are affecting trade and investment worldwide.
Emerging economies are particularly affected. The IMF anticipates a 3.7% growth rate for these markets in 2025, a decrease from the earlier estimate of 4.3%. Mexico’s economy is now expected to contract by 0.3%, reversing a previous growth forecast of 1.4%, due to weakened economic activity and the repercussions of U.S. tariffs.
In Asia, China’s growth forecast has been lowered by 0.6 percentage points, influenced by escalating trade tensions with the U.S. Conversely, Russia’s 2025 growth projection has been slightly increased to 1.5%, although this still represents a slowdown from the estimated 4.1% growth in 2024.
The IMF warns that the combination of high tariffs and tighter financial conditions could further hinder global economic recovery, especially for developing nations with limited fiscal flexibility. The organisation emphasizes the need for coordinated policy efforts to address these challenges and support sustainable growth.
via REeuters