Steep tariffs on U.S. trading partners have left businesses paralyzed by uncertainty.Credit…Maggie Shannon for The New York Times
The latest global economic forecast: storms ahead
President Trump’s trade war is expected to slow economic growth across the globe this year, the International Monetary Fund said yesterday in a major report.
The gloomier outlook stems in large part from the impact of tariffs on the U.S. economy, which is expected to see slower growth and higher inflation. Growth forecasts for China and Europe were also lowered.
The I.M.F. forecasts that global output will slow to 2.8 percent this year from 3.3 percent in 2024. It also expects output to be slower next year.
Quotable: “The global economic system that has operated for the past 80 years is being reset,” the I.M.F.’s chief economist said. The surge in uncertainty related to trade policy but also more broadly is a major driver of the economic outlook, he said.
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New world order: Finance ministers and other policymakers are in Washington this week for meetings of the I.M.F. and the World Bank, which are under pressure to prove their relevance to the Trump administration.
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