U.S. tariffs top great depression era, IMF lowers 2025 growth outlook
Posted on April 24, 2025 |
IMF cuts U.S. 2025 growth forecast to 1.8% from 2.7%, citing tariffs that now exceed Great Depression levels.
The global growth outlook for 2025 lowered to 2.8% (from 3.3%), with 2026 revised down to 3% (from 3.3%).
The U.S. economy is projected to slow further to 1.7% in 2026, down from the earlier 2.1% estimate.
Mexico sees the sharpest revision among major economies, with the 2025 forecast shifting from +1.4% to a -0.3% contraction.
China’s growth outlook lowered to 4% for both 2025 and 2026, down from 4.6% and 4.5%.
New and retaliatory tariffs are expected to further slow global momentum if more trade barriers are introduced.
IMF raises global inflation forecast and warns against political pressure on central banks, stressing the need for monetary policy independence.
