The global economy has been buffeted by US policy volatility this year, most notably over trade tariffs, with policymakers and businesses across the globe struggling to keep up with an everchanging outlook. This volatility has been reflected in economic outlooks from major forecasters.
Having downgraded its global economic growth expectations for 2025 by 0.5 percentage points to 2.8% in April (MEES, 25 April), the IMF revised its outlook for the year up to 3.2% last week. The latest World Economic Outlook (WEO) says that although the impact of tariffs has been tempered, risks remain firmly tilted to the downside; “Prolonged uncertainty, more protectionism, and labor supply shocks could reduce growth.” (CONTINUED - 849 WORDS)
