IMF Cuts Economic Forecasts Globally Due to DJT

The International Monetary Fund published an update to its World Economic Outlook, which showed its forecast for global GDP growth reduced to 2.8% for 2025, 0.5% weaker than projected in January.

It said, “We expect that the sharp increase on 2 April in both tariffs and uncertainty will lead to a significant slowdown in global growth in the near term” and “intensifying downside risks dominate the outlook.”

The primary cause cited? Donald Trump’s tariff war.

His chaos is projected to hit every major economy being hit. The USA  growth forecast dropped from 2.7% to 1.8%. The UK growth forecast dropped from 1.6% to 1.1%. The IMF said Trump was not the sole problem for the UK, where it said more blame falls on “domestic factors” such as higher borrowing costs and softened consumer spending, to which inflation and high energy costs contribute.

IMF said developing economies were likely to suffer sharper consequences.

IMF estimated the probability of a recession in the USA close to 40%. In October, the month before Trump’s election, that probability was 25%.

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