The U.S. and global economies will likely slow significantly in the wake of U.S. President Donald Trump’s tariffs and the uncertainty they have created, the International Monetary Fund said Tuesday.
The IMF said that the global economy will grow just 2.8 per cent this year, down from its forecast in January of 3.3 per cent, according to its latest World Economic Outlook. And in 2026, global growth will be 3.0 per cent, the fund predicts, also below its previous 3.3 per cent estimate.
The fund also sees the world’s two largest economies, China and the United States, weakening: U.S. economic growth will come in at just 1.8 per cent this year, down sharply from its previous forecast of 2.7 per cent and a full percentage point below its 2024 expansion.
The IMF doesn’t expect a U.S. recession, though it has raised its odds of one this year from 25 per …