In its report, the IMF estimates that the US will be more affected by Europe or China by Donald Trump’s tariff policy
The International Monetary Fund (IMF) He was unexpectedly downgraded his prediction for the development of the United States, while diminishing his estimates of the eurozone and China due to Donald Trump’s duties.
The IMF now estimates that the USA They will grow at a rate of 1.8% this year, a 0.9 percentage points decrease compared to the January forecast, according to the new World Economic Outlook report, published twice a year. Forecasts for other major economies were also degraded: growth in the eurozone decreased by 0.2 percentage points and in China by 0.6.
The latest provision of the IMF offers additional arguments to critics of its commercial policy Washingtonwho argue that the United States will be the largest loser in a trade war, Politico notes.
The Mexico It is the only major economy that the IMF report degrades more with a negative revision of 1.7 percentage points for 2025.
The International Monetary Fund (IMF) pointed out that consumer, business and investment confidence indicators began to hit “red” after the announcement of the US government’s duty package on April 2.
The Fund reduced its prediction for the growth of all advanced economies to 1.4% this year, from 1.9% in its last quarterly updating in January.
Despite the downgrades, the US is expected to surpass the eurozone. The monetary union is expected to grow by only 0.8% in 2025 and 1.2% in 2026. Germany, the largest eurozone economy, is projected to remain stagnant this year, with growth recovering to 0.9% in 2026. recovery of growth.
In China, the recession in the real estate market in combination with domestic export imbalances have exacerbated the country’s financial problems. The duties have hit the Asian economy “disproportionately”, according to the IMF, which points out that the necessary shift to strengthening domestic consumer demand shows signs of stagnation.
In addition to damage to individual economies, the international organization also warns of a possible derailment of financial markets, which remain unstable since April 2. The main indicators of the stock markets, especially in the US, remain well below levels before the “liberation day” – and may fall even further. The value of the dollar against other major coins has also been eroded, which is another worrying signal.
“Normally, the dollar would be expected to be reinforced if the financial conditions are deteriorating abruptly,” the report said. “However, the International Monetary System may undergo a sudden” reset “, with possibly serious implications for the dollar as its basic foundation.”
The IMF also warns of possible social consequences of a further collapse of the economic order, with populations already affected by inflation and the crisis of life costs at risk of “polarization and social upheavals”.
Source: Skai
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