IMF Forecasts Stronger Growth as Tariff Threats Subside

The IMF’s latest global forecast projects 3% growth in 2025, up from 2.8%, citing the fading of U.S. tariff threats and improved conditions for international trade. Global markets have responded positively.
Chief Economist Pierre-Olivier Gourinchas also reported that 2026 growth expectations have climbed to 3.1%. The report credits a mix of trade diplomacy and investment revival for the momentum.
In the UK, growth is forecast at 1.2%. Chancellor Rachel Reeves noted that the upgrade reflects confidence in Britain’s long-term infrastructure and industrial strategy.
Trump’s earlier threats of widespread tariffs sparked volatility, but recent deals capping those measures—especially with the EU and Asia—have stabilized exchange rates and increased trade flows.