London
Cnn
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The unpredictable pricing policy of President Donald Trump and the countermeasures of American trade partners will probably take a hard blow to the economies of the whole world, the American prosperity struck particularly strong, warned the international monetary fund on Tuesday.
Global economic growth will slow down to 2.8% this year, compared to 3.3% last year and significantly lower than the historical average, IMF forecasts in its report on global economic prospects.
The slowdown expected in the United States is even higher, its economy is likely to grow 1.8% in 2025, against an expansion of 2.8% in 2024.
The two predictions are more pessimistic than the January’s projections of the fund, which were before the Trump rate burst, Trump’s tariff announcements brought the average import tax of America to its highest level in a century.
“The rapid climbing of trade tensions and the extremely high levels of political uncertainty should have a significant impact on global economic activity,” said the institution based in Washington, DC. And the risks for the global economy are “firmly tilted downwards,” he added.
Trump’s new prices represent almost half of the net demotion of US IMF growth forecasts for this year, Pierre-Olivier Gourchas, the IMF chief economist, wrote in a blog article, noting that uncertainty about political demand in the United States even before recent prices.
North America, like all regions, cannot expect rates further. “The long -term impact of the prices, if they are maintained, (will be) negative for all regions, as are short -term impacts,” Gourinchas to journalists told Gourinchas on Tuesday.
Gourinchas also said that “the independence of the central bank remains a cornerstone”. The comment comes just one day after Trump attacked the president of the American federal reserve Jerome Powell as “major loser”, part of his continuing campaign aimed at putting pressure on the Central Bank chief to reduce interest rates.
The reduction in borrowing costs at this stage would risk pushing American inflation, which still takes place above the 2% target of the Fed and should increase more due to Trump prices, according to many forecasters.
The IMF is darker and darker on American prices and now sees inflation reaching 3% this year, against its January 2% forecasts.
The latest global economic prospects were brought together in “exceptional” circumstances, said the IMF. Trump’s unveiling of radical prices on April 2 “” forced us to abandon our projections-almost finalized at that time, “he wrote.
Likewise, Gourinchas has told journalists: “We are entering a new era as a global economic system that has been working for 80 years.”
Stressing the importance of trade for economic prospects, the IMF has declared in its report that an adrency of trade tensions, as well as even more questions on trade policies, could reduce growth more, while “de -escalation of current rate rates and new agreements providing the clarity and stability of commercial policies” could do the opposite.
In an interview, Christine Lagarde, president of the European Central Bank, expressed a similar vision of trade. “Free trade has always improved overall growth, has been a serious contributor to the development of all economies,” she said in CNBC on Tuesday.
She said higher prices will have a negative impact on Europe’s economic growth, although it does not expect a recession in the 20 countries that use the euro.
This story has been updated with additional information. Anna Cooban contributed the reports.
