The global economy is facing new challenges as tariff uncertainties cloud the horizon. Pierre-Olivier Gourinchas, Chief Economist and Director of the International Monetary Fund’s (IMF) Research Department, highlights how recent U.S. tariff policies, along with countermeasures from other nations, are reshaping economic prospects worldwide.
According to Gourinchas, these trade tensions are not just affecting the economies directly involved but are also casting a shadow over global growth. Businesses are hesitant to invest, and markets are wary, leading to a slowdown in economic activities.
In light of these developments, the IMF has adjusted its global growth forecast for 2025, lowering it from 3.3% to 2.8%. This significant revision underscores the profound impact that tariff policies and uncertainties are having on the world economy.
For many countries, especially in the Global South, these shifts could mean slower growth and fewer opportunities. It’s a reminder of how interconnected our world is and how policies in one nation can ripple across the globe, affecting economies and people’s lives everywhere.
