The International Monetary Fund (IMF) has expressed concerns over the global economy's growth due to President Trump's tariffs, forecasting a reduction in global growth to 2.8% for 2024. The U.S. growth forecast was also slashed to 1.8% this year. These changes reflect increased economic uncertainty and potential for conflict as countries like China retaliate with their own tariffs. IMF chief economist Pierre-Olivier Gourinchas highlighted that sustained trade tensions could significantly slow economic growth, marking a reset of the global economic order established over the past 80 years.
The IMF foresaw a potential shrinkage in global economic growth due to U.S. tariffs, reducing its forecast from 3.3% to 2.8% for 2024.
Pierre-Olivier Gourinchas stated that we're entering a new era as the global economic system that has operated for the last 80 years is being reset.
Increased trade tensions and policy uncertainty are significant drivers of the current negative economic outlook, threatening to slow global growth considerably if sustained.
Investor fears have risen that targeted countries will retaliate against U.S. tariffs, leading to more widespread economic tensions across global markets.
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