IMF upgrades growth forecasts but Central Bank here warns of tariffs hit
Briefly

IMF upgrades growth forecasts but Central Bank here warns of tariffs hit
"The US President's wave of tariffs have so far proved less disruptive than expected, the IMF said on Tuesday, but it cautioned the trade barriers still pose risks. The impact has been lessened by the failure of blocs like the EU to retaliate and masked by a boom - potentially reaching bubble levels - in Artificial Intelligence technology investments, it said."
""The new agreement between the EU and US, although yet to be fully implemented, is expected to moderately reduce Irish growth in the medium-to-long run, driven by activity in MNE-dominated sectors, particularly pharmaceuticals and chemicals," Gabriel Makhlouf said in a speech to the Atlantic Council in Washington DC as part of 'IMF week'. The current tariffs could lead to reduction of around 1pc in Irish economic output relative to a no-tariff scenario over the long-term, he said."
"Meanwhile, in its report the IMF said the US economy will expand 2pc in 2025. That is slightly higher than the 1.9pc forecast in July. The US should grow 2.1pc next year, marginally better than the previous projection, the IMF said. The global economy will grow 3.2pc this year, slowing to 3.1pc in 2026, according to the IMF's World Economic Outlook.."
The IMF finds that recent US tariffs have proven less disruptive than expected but continue to pose risks to trade. Limited retaliation from blocs such as the EU and a boom in artificial intelligence investment have muted observable effects. The Central Bank of Ireland warns that 15% tariffs will reduce exports to the US and slow Irish growth. The new EU-US agreement is expected to moderately reduce medium-to-long-run Irish growth, especially in multinational-dominated sectors like pharmaceuticals and chemicals. Current tariffs could lower Irish output by around 1% versus a no-tariff scenario. IMF forecasts show modest adjustments to US and global growth projections.
Read at Irish Independent
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