IMF cuts 2025 global growth forecast to 2.8% from 3.3%

• Sees 2025 at 2.8% vs 3.3% in January
• Sees 2026 at 3.0% vs 3.3% prior
• 2025 US GDP seen at 1.8% vs 2.7% prior
• 2026 US GDP seen at 1.7% vs 2.1% prior
• 2025 China GDP seen at 4.0% vs 4.6% prior
• 2026 China GDP seen at 4.0% vs 4.5% prior
• 2025 Germany GDP seen at 0.0% vs +0.3% prior

The IMF cited US tariffs for the cut. The lone economy where negative GDP is forecast is Mexico but it has been one of the stronger equity markets this year.

“Intensifying downside risks dominate the outlook, amid escalating trade
tensions and financial market adjustments. Divergent and swiftly
changing policy positions or deteriorating sentiment could lead to even
tighter global financial conditions. Ratcheting up a trade war and
heightened trade policy uncertainty may further hinder both short-term
and long-term growth prospects. Scaling back international cooperation
could jeopardize progress toward a more resilient global economy,” the IMF said.

This article was written by Adam Button at www.forexlive.com.