Catenaa, Wednesday, April 23, 2025-The International Monetary Fund (IMF) warned yesterday (22) that the global economy is entering a new, more volatile era, marked by heightened trade tensions, rising tariffs, and policy uncertainty.1
The IMF’s April 2025 World Economic Outlook projects global growth to slow to 2.8 percent this year, a sharp downgrade from its January forecast of 3.6 percent.
The US led the shift, enacting sweeping tariff hikes since February, culminating in near-universal levies by April 2.
Trading partners retaliated, driving up global tariff rates and sowing uncertainty across markets.
Despite a brief US tariff pause after April 4, elevated rates remain, particularly targeting China. These measures, the IMF notes, are weakening demand, spurring inflation, and threatening long-term productivity and innovation.
In the United States, 2025 growth was revised down to 1.8 percent from 2.7 percent, with tariffs accounting for nearly half the drop.
Inflation is now expected to rise to 3 percent. China’s growth is forecast at 4 percent, while the eurozone faces modest slowdowns.
Global trade is expected to grow just 1.7 percent, lagging behind global output for the first time in years. The IMF cautioned that disrupted supply chains and financial tightening could magnify the downturn.
The IMF urged policymakers to stabilize trade policy, ease global tensions, and promote cooperation. It also called for targeted fiscal reforms, smarter monetary policy, and renewed efforts to support inclusive growth.
Failure to act, it warned, could cement long-term economic fragmentation and inequality.
IMF’s full report can be reached here.
- www.imf.org: https://www.imf.org/en/Blogs/Articles/2025/04/22/the-global-economy-enters-a-new-era[↩]
