World’s ‘Precarious’ Trade Backdrop Hurting Growth, IMF Says

The world economy will keep weakening and remains vulnerable to trade shocks even though it is showing some resilience to Donald Trump’s tariffs, the International Monetary Fund said.

The Washington-based lender, updating its forecasts on Tuesday, sees global growth decelerating to 3% in 2025 from 3.3% last year amid disruption from the US president’s attempts to rewire commerce. The projections are slightly better than those in April, but largely reflect distortions such as front-loading in anticipation of tariffs.