The IMF has increased its global growth forecast for 2025 to 3%, highlighting a turnaround in U.S. trade policy as a major reason. Trump’s reduced tariff approach has eased pressure on global trade.
The 2026 forecast was similarly adjusted to 3.1%. These figures reflect sustained expansion following 2024’s 3.3% growth and renewed strength in emerging and developed markets alike.
The UK’s growth outlook was bumped to 1.2%. Chancellor Rachel Reeves said the update confirms Britain’s strong economic fundamentals and growth potential driven by long-term capital investments.
The improved forecast follows a retreat from earlier threats of high tariffs, replaced with negotiated deals involving oil, gas, and manufactured goods—restoring balance in key trading relationships.
