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IMF Lowers 2025 Global Economic Growth Projection To 2.8%

The International Monetary Fund (IMF) has warned that global economic growth is expected to slow sharply due to escalating trade tensions and increasing policy uncertainty. 

In its April 2025 World Economic Outlook (WEO) report, the IMF said that the global growth projection for this year has fallen to 2.8%, down from the previous estimate of 3.3%. 

This decline was largely due to a series of new tariffs imposed by the United States since the beginning of this year, culminating in a massive tariff policy on April 2. 

"The rapid escalation of trade tensions and the very high level of policy uncertainty are expected to have a significant impact on global economic activity," the IMF wrote in its report, Wednesday (23/4). 

The tariffs brought the US effective tariff rate to its highest level in the last century. Major trading partner countries, including China, responded with retaliatory policies that exacerbated tensions. 

Economic growth in advanced countries is expected to reach only 1.4% in 2025. In the US, growth is predicted to slow to 1.8%. In the euro area, growth will only reach 0.8%. 

Developing countries are also affected, especially those directly affected by trade tariffs. Growth in this group is projected to decline to 3.7% in 2025. 

The IMF also highlighted risks to the economic recovery, including potential global financial instability, foreign exchange market disruptions, debt distress in developing and low-income countries, and social risks from a prolonged cost-of-living crisis. 

"The resilience of many developing countries may be tested as servicing high debt levels becomes more challenging in adverse global financial conditions," it said. 

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Tag: Global Economic International Monetary Fund World Economic Outlook