29 Jul 2025, 16:36
Global Economic Growth Expected Due to Lower Tariffs
- The IMF forecasts a 3% increase in global economic growth in 2025.
- Lower tariffs from Trump positively impacted American imports.
- Conflicts in the Near East create risks for global trade.
The International Monetary Fund (IMF) has updated its forecast for global economic growth, stating that the global increase will be stronger than previously expected. In 2025, the global economy is projected to grow by 3%, and in 2026 – by 3.1%. This improvement is compared to previous forecasts, which were 2.8% and 3% respectively.
The main factor for the positive change is the increase in imports to the USA and the reduction of some tariffs imposed by President Donald Trump. The import in the USA is rising, as businesses are eager to cut elevated tariffs planned for this year.
According to IMF data, the reduction in tariffs has also reduced tensions in trade, which in turn positively impacted the global economy. However, the IMF also warned that a return to high tariffs could negatively impact growth.
Moreover, conflicts in the regions, such as the Near East, continue to create risks for global supply chains and trade, which could contribute to rising prices for raw materials, such as oil. However, if trade negotiations lead to further tariff reductions, this could help stimulate economic growth.
The IMF also highlighted technological advancements, particularly the use of artificial intelligence, as one of the ways to enhance global growth.
Tags: Economy