IMF Forecasts Steady Growth Amid Tariff Turbulence

The International Monetary Fund (IMF) forecasts slightly improved growth for the US and global economies in its latest World Economic Outlook. Despite the disruptive potential of US tariffs, initial economic impacts have been mild, with importers absorbing costs and various countries maintaining open trading systems.

The International Monetary Fund (IMF) has updated its World Economic Outlook, projecting marginal growth improvements for both the US and global economies despite the persisting threat of US tariffs. Tariffs implemented by the Trump administration have shown limited economic upheaval so far, suggests the semi-annual report released on Tuesday.

The IMF anticipates the US economy will experience a 2% expansion by 2025, marginally increasing from previous projections. Similarly, global growth is predicted at 3.2% for this year, up from an earlier 3% estimate. The resilience is partly due to trade deals and exemptions negotiated by the US, which have aided in keeping trade systems operational.

However, the IMF warns that the full repercussions of trade policies are still emerging. Despite modest optimism in its forecasts, challenges such as increased core inflation and a slowdown in hiring loom, driving caution among businesses. The report underscores the importance of adaptive strategies in sustaining economic health amidst geopolitical trade tensions.

(With inputs from agencies.)