London, Yiannis Haniotakis

The International Monetary Fund (IMF) has downgraded its prediction for the development of the British economy, sounding the alarm about the consequences of Donald Trump’s tariff policy.

According to the revised estimate of the international organization, the development of the British economy is expected to configured at 1.1% for the 2025 and in 1.4% for 2026.

The deterioration of the economic landscape is attributed to three key factors:

  • The rise of borrowing costs associated with imposing US duties.
  • High inflation, a result of global supply chain disorders.
  • The increased energy cost, with the backdrop of prolonged instability caused by the Russian invasion of Ukraine

Commenting on the above, the Minister of Finance Rachel Reeves stated: “The IMF has recognized that this government is conducting reforms that will lead to long -term growth in the United Kingdom through our plan to change. The report also clearly shows that people have changed, so I will be in Washington this week to defend British interests and support free and fair trade. “

In his report the IMF points out that the multiple duties that impose Washington create a climate of economic uncertaintythreatening the fragile recovery of the world economy. “Uncertainty, especially in terms of commercial policy, has been ejected at unprecedented levels,” the report notes, adding that Donald Trump’s policies “are coming against an already cold economic dynamic”.

However, the IMF upgraded the British economy growth forecasts for the 2028 and 2029 by 0.1%.