Worldwide growths are to delay in the midst of trade tensions, policy uncertainty: IMF | Mint

The global economic growth will slow down in the calendar year 2025 than rising trade tensions and increased policy uncertainty dampening activity, the International Monetary Fund (IMF) said in its latest World Economic Prospects (WeO) 2025. Contradiction of the fainting, and the affliction of the good, and the objection of the sake, and the concern of the sake, and the concern of the investment, and the concern of the sake, and the concern of the sake, and the trouble of the investment, and the trouble, and the consecration, owing of the investment, and the goodbye. Rates. The global gross domestic product (GDP) is now expected to grow by 2.8% in 2025 and 3% in 2026 -of the 3.3% forecast for both years in the January 2025 update. This is a cumulative downgrade of 0.8 percentage points, far below the average 2000-2019 of 3.7%, the IMF noted. Also read: Will the global economy strike stall? It is best to support for it in any case that advanced economies will expand only 1.4% in 2025. The US economy is expected to delay to 1.8% – carefully a full percentage point lower than previous estimates – is due to the softer demand, policy uncertainty and trade friction. Europe is expected to grow with a modest 0.8%, while emerging markets and developing economies are expected to expand by 3.7% in 2025 and 3.9% in 2026, with China under the heaviest by recent trade measures. Meanwhile, India’s growth of 2025-26 GDP is expected to be 6.2%, lower than its earlier estimate of 6.5%. Global inflation is expected to be more gradually facilitated than previously projected, reaching 4.3% in 2025 and 3.6% in 2026, with upward revisions for advanced economies and slight downward adjustments for emerging markets, the Weo said. “The rapid escalation of trade tensions and exceptionally high levels of policy uncertainty is expected to have a significant impact on the global economic activity,” the IMF said in the executive summary of the WO. Also read: India’s economy strengthened in February, but external weakness remains a concern, showing that the coin detector “the disadvantage risks dominate the outlook. It can further reduce a trade war, along with even more increased trade policy uncertainty, and reduce the growth of long-term to long-term, while eroding the policy bummers. In April 2025, the US imposed rates under US President Donald Trump’s ‘Liberation Day’ initiative to combat the imbalances of the trade and protect domestic industries. A 10% fixed tariff on all imports came into effect on April 5, followed by higher, country-specific reciprocal rates from April 9 India was hit with a 27% duty, while China and Vietnam faced 34% and 46% respectively. The move disrupted global trade, increased costs and contributed to economic uncertainty. However, in an effort to defuse mounting tension, the US has since suspended the tariff increase of April 9 90 days for all countries, but China, which is now facing up to 145%. The 10% baseline rate remains in place for other countries. Also read: Stock Analysis: India’s billionaire boom is not a sign of a hunky-dory economy first published: 22 Apr 2025, 08:35 IST