The International Monetary Fund (IMF) has lowered its forecast for global economic growth in 2025 to 2.8%, pointing to the impact of new tariffs imposed by U.S. President Donald Trump.
In a report released on Tuesday, the IMF highlighted how escalating trade tensions and tariff hikes by the United States are slowing down international trade and investment.
“The recent tariff measures are beginning to weigh on global economic activity,” the IMF stated. “These actions are dampening the outlook for the world economy.”
The revised forecast marks a significant reduction from previous estimates, raising concerns about potential challenges for economies around the world, particularly in developing nations.
Youth and young adults in the Global South may feel the effects through reduced job opportunities and higher prices on everyday goods, as global supply chains are disrupted.
Experts are urging policymakers to seek solutions that promote cooperation and reduce trade barriers to prevent further slowdown.
“It’s crucial for countries to work together to foster an open and fair trading system,” the IMF emphasized.
