The global economy will be able to survive US President Trump’s trade wars with stronger growth, the International Monetary Fund said in its recent up -to -date forecasts.

In the quarterly briefing of global economic prospects, the IMF estimates that the global economy will grow by 3% this year, up 0.2 percentage points from April’s previous forecast, Axios notes.

The International Monetary Fund warns, however, that the resilience of the economy is supported by powerless components and not by the type of durable tendencies that will push further growth.

Lower growth compared to last year

Growth will continue to be lower than 3.3% of last year and remains “frustratingly under the average before the pandemic,” chief economist Pierre-Kolivier Gurincsa told reporters on Tuesday.

Forecasts for US economic growth were slightly revised up to 1.9%. The next year’s growth was upgraded by 0.3 percentage points to 2%, reflecting an expected boost from tax incentives for corporate investment. “This durability is welcome, but it is also fragile,” Gourinssa said.

“While trade shock could prove less serious than originally estimated, it is still significant and increasing evidence that it is hurting the world economy,” he added.

Meanwhile, Donald Trump has scored a victory in recent weeks, as financial data have surprised markets, defying the ominous forecasts for inflationary shock and slowing growth.

However, Wall Street economists argue that prospects are more auspicious, in part because the worst of the duty threats has not been implemented.

In a fixed too but …

“The global economy has continued to remain on a steady track, but the individual elements of economic activity indicate distortions from duties, rather than underlying strengths,” IMF economists wrote in the report.

“International trade and investment have led the economy, while private consumption was more restrained,” they added.

However, the risks to the global economy are being declining, according to Gourinssa, even as Trump announces a number of trade agreements.

“But the duties could well be re -regulated to a much higher level as soon as the August 1 deadline expires or if the existing agreements collapse,” he added. The dollar has recovered after the US-EU trade agreement, although it has been depreciated by about 9% since the beginning of the year. This practically means that the blow is smaller for the US, but increased for commercial partners.

The conclusion? The global economy is facing significant risks to the future, but the prospects now seem much better than it was in April.