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IMF raises 2025 global growth forecast on 'modest' US trade shock

  • In its World Economic Outlook, the International Monetary Fund raised the 2025 global growth forecast to 3.2 percent, warning of lingering downside risks from trade uncertainty.
  • US tariffs and sweeping trade measures, plus a threatened fresh tariff on China, have heightened trade uncertainty, while global inflation remains elevated at 4.2 percent this year and the war in Ukraine slows Russia's economy.
  • Elsewhere in Asia, the IMF raised India's 2025 growth forecast to 6.6 percent and Japan's to 1.1 percent; it upgraded US growth prospects to two percent in 2025 and two point one percent in 2026.
  • This year, the Eurozone's outlook has slightly improved with modest growth expected while Germany edges out of recession, France, Spain, and the UK show mixed paths, and Russia faces a marked slowdown.
  • `The good news is that growth impact of the trade shock is modest so far,' IMF chief economist Pierre-Olivier Gourinchas told reporters, adding that the private sector supported growth amid an AI boom.
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With a limited impact to date on economic activity and prices, the International Monetary Fund (IMF) improved prospects for global economic growth by 2025 to 3.2 percent, 0.2 percentage points from its June projections. While by 2026 it kept them at 3.1 percent by warning that the adverse effects of trade policies are beginning to be noticed.“As the world economy slides into a more fragmented landscape, risks to prospects increase. Tactics that …

·Mexico
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The IMF raises its growth forecast for the US to 2% in 2025 and for the global economy to 3.2%, despite the Trump administration's tariffs. Inflationary risks and impacts persist.

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InsideNoVA.comInsideNoVA.com
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IMF lifts 2025 global growth forecast, warns of ongoing trade 'uncertainty'

The International Monetary Fund on Tuesday lifted its outlook for global growth this year, flagging a milder-than-expected economic hit from President Donald Trump's tariff policies while warning of risks ahead.

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The spokesman-Review broke the news in Spokane, United States on Tuesday, October 14, 2025.
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