The IMF has revised its global economic growth forecast down to 2.8% this year, attributed to U.S. tariffs and economic uncertainty. This marks a decline from the previous estimate of 3.3%. The U.S. economy is expected to grow at 1.8%, a noteworthy cut from 2.7%, with raised recession odds from 25% to 40%. The IMF highlights that all countries will be impacted by increased U.S. import taxes, which have reached levels unseen in a century. China's growth is also expected to slow, indicating a broader economic slowdown.
The tariffs and uncertainty have caused significant economic slowdowns, with the IMF forecasting a drop in global growth from 3.3% to 2.8% this year.
'We are entering a new era,' said Pierre-Olivier Gourinchas, chief economist at the IMF, referring to major changes in the global economic system occurring today.
Every country is affected by the U.S. tariffs, raising average import taxes to around 25%, the highest seen in a century.
Economists worried about recession are revising odds upward, with JPMorgan estimating a 60% chance of a U.S. recession, up from 25% earlier.
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