The IMF has increased its global growth forecast for 2025 to 3%, highlighting a turnaround in U.S. trade policy as a major reason. Trump’s reduced tariff approach has eased pressure on global trade.
The 2026 forecast was similarly adjusted to 3.1%. These figures reflect sustained expansion following 2024’s 3.3% growth and renewed strength in emerging and developed markets alike.
The UK’s growth outlook was bumped to 1.2%. Chancellor Rachel Reeves said the update confirms Britain’s strong economic fundamentals and growth potential driven by long-term capital investments.
The improved forecast follows a retreat from earlier threats of high tariffs, replaced with negotiated deals involving oil, gas, and manufactured goods—restoring balance in key trading relationships.
IMF Raises Growth Forecast as Trump Shifts Gear on Trade
