Washington, April 22, 2025 – The International Monetary Fund has slashed its global economic growth rate forecast to 2.8% in 2025 amid US President Donal Trump’s trade war.
The Washington-based body now predicts growth of 2.8% this year and 3% next year against the 3.3% earlier predicted for both 2025 and 2026.
It said “The global economic system under which most countries have operated for the last 80 years is being reset, ushering the world into a new era.”
TheIMF, in its latest World Economic Outlook dated April 22, 2025, reported a slowdown in global growth as downside risks intensify.
“While policy shifts unfold and uncertainties reach new highs, policies need to be calibrated to rebalance growth-inflation trade-offs, rebuild buffers, and reinvigorate medium-term growth, thereby reducing both internal and external imbalances,” it said.
