Outlook for US, global growth down

IMF: Trade tensions, policy uncertainty weighing on economic prospects

Growth projections for the global and United States economies this year have declined, respectively, by 0.5 and 0.9 percentage point from January projections, due to trade tensions and policy uncertainty, the International Monetary Fund said on Tuesday. It added, however, that growth prospects could improve "immediately" if countries ease tariffs and pursue trade deals.

The latest "World Economic Outlook" report, released at the start of the IMF/World Bank Spring Meetings, said that rising trade tensions and heightened policy uncertainty are weighing heavily on global economic growth prospects, marking a potential turning point for the world economy.

It said that tariff increases announced between Feb 1 and April 4 by the US, and retaliatory measures from other countries, have triggered a downgrade in forecasts for global growth, which is projected to drop to 2.8 percent in 2025 and 3 percent in 2026, both below its previous projections of 3.3 percent, and also far below the average 3.7 percent growth rate for the world economy between 2000 and 2019.