Economic Uncertainty Looms with Tariff Strains

A significant number of economists predict a global recession due to U.S. tariffs impacting business sentiment, according to a Reuters poll. With tariffs causing market instability and high duties on goods, economists are revising down global growth forecasts, exacerbating fears of a stagflationary environment.

The likelihood of a global recession this year is high, according to a majority of economists surveyed in a Reuters poll. They cite U.S. President Donald Trump's tariffs as a major contributor to damaging business sentiment.

Previously, in a similar poll three months ago, the global economy was expected to grow consistently. However, Trump's tariff policies have unsettled financial markets, impacting investors' perceptions of U.S. assets and depleting stock market values.

Many global firms have been forced to reduce revenue forecasts due to the unpredictability of trade conditions. Nearly all economists surveyed shared a negative outlook on the impact of tariffs, with global growth projections for 2025 revised downward to 2.7%.

(With inputs from agencies.)