IMF Forecasts Resilient Growth Despite Tariff Turbulence

The IMF predicts slight economic growth for the US and global economies this year despite ongoing tariff tensions under the Trump administration. While AI investment mitigates some of the impact, lingering trade uncertainty poses risks. The IMF remains cautiously optimistic but warns of potential future economic repercussions.

The International Monetary Fund (IMF) has announced updated forecasts, projecting slightly higher economic growth for the United States and the global economy than previously anticipated. This comes despite the continued impact of tariff policies under the Trump administration, which have so far proved less disruptive than expected.

According to the IMF's World Economic Outlook, the US economy is expected to expand by 2% in 2025, a modest increase from earlier projections. Global economic growth is forecasted at 3.2% for the current year. These projections underscore a cautious optimism given the looming uncertainty over continued tariff threats and their long-term effects.

IMF Chief Economist Pierre-Olivier Gourinchas noted that investment in artificial intelligence, with significant contributions from companies like AMD and Oracle, has helped counterbalance some trade tensions' negative impacts. Nonetheless, the IMF warns that the evolving trade dynamics could still influence future economic trajectories, particularly if tariff measures intensify.

(With inputs from agencies.)