Uncertainty Looms Over Global Economy with US Tariff Turmoil

The IMF's latest World Economic Outlook highlights growing uncertainties in global markets, driven by the erratic US tariff policies under President Trump. Economists express concerns as 2025 and 2026 economic growth forecasts are revised downwards. Financial markets face heightened volatility and unpredictability similar to the COVID-19 crisis.

The International Monetary Fund (IMF) has released its latest World Economic Outlook, pointing to increased unpredictability in the global economy, exacerbated by recent US tariff policies. President Trump's new tariff measures have ramped up uncertainty, influencing the IMF's decision to downgrade economic growth forecasts for the coming years.

Following the largest tariff increase in modern history on April 2, the US administration announced a temporary 90-day freeze on further hikes, yet excluded China from this pause. Such unpredictability is causing significant disruption in international financial markets, drawing parallels to the instability seen during the pandemic.

As investors question the security of US government debt, financial markets are reacting with heightened volatility. The weakening of supply chains further compounds the challenges faced by global businesses, reminiscent of disruptions experienced during COVID-19. The IMF warns that uncertainty must be addressed to prevent deeper economic impacts.

(With inputs from agencies.)