IMF's Sobering Forecast: A Reset in Global Economic Growth

The IMF has revised its economic forecasts, citing President Trump's tariffs as a major factor in declining growth prospects. Global growth is projected at 2.8% for this year, reduced from 3.3%. The US economy is also expected to slow significantly, with increased recession odds.

The International Monetary Fund (IMF) has issued a grim update on global economic growth, attributing the downturn largely to the tariffs imposed by President Donald Trump. The much-anticipated report reveals that the global economy will expand by just 2.8% this year, a marked decrease from the 3.3% growth forecasted in January.

In a similar vein, the United States is facing an economic cool-down, with growth expected at merely 1.8% in 2023, a steep fall from the IMF's previous projection of 2.7%. This adjustment aligns with predictions from private-sector economists and is in line with the Federal Reserve's own projections of a slowdown to 1.7% growth.

While the IMF does not foresee an impending US recession, the probability has increased from 25% to 37% according to their latest assessments. IMF Chief Economist Pierre-Olivier Gourinchas stated, 'We are entering a new era,' indicating a significant shift in the global economic landscape.

(With inputs from agencies.)