IMF warns on Trump's plans but upgrades UK economic outlook:
Trump's policies could benefit the US, but not the rest of the world, the IMF says
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IMF Flags Risks in US Tariffs, Upgrades UK Growth ForecastThe IMF raised the UK growth forecast to 1.6% for 2025 while warning Trump's tariffs could disrupt global trade and investment.
- The IMF now expects the UK economy to grow by 1.6% in 2025, up from its earlier prediction of 1.5%.
- Proposed US tariffs under Trump threaten to increase trade tensions and disrupt global supply chains.
- Short-term US economic boosts from tax cuts and tariffs risk triggering inflation and a subsequent downturn.
- Uncertainty about Trump’s policies is already impacting global stock markets and poses significant economic risks.
"tremendous uncertainty" about Trump's future policies was already affecting stock markets around the world.— Pierre-Olivier Gourinchas, IMF chief economist
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overview of the economy of the United Kingdom
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Key FactsIMF Predicts Major Economic Struggles for UK
Apr 22, 2025 · Reading time: ~45 sec.
Summary created with AI assistance · Source: metro.co.uk
Summary created with AI assistance · Source: metro.co.uk
- The IMF has downgraded the UK’s growth outlook by one third, forecasting only 1.1% expansion in 2025.
- US tariffs imposed by Donald Trump are expected to severely disrupt the British economy and global trade dynamics.
- UK inflation is projected at 3.1%, the highest among G7 countries this year according to the IMF.
- These economic pressures coincide with an impending government spending review likely to introduce significant budget cuts.
While many of the scheduled tariff increases are on hold for now, the combination of measures and countermeasures has hiked US and global tariff rates to centennial highs.— Pierre-Olivier Gourinchas, IMF’s top economist, said: "While many of the scheduled tariff increases are on hold for now, the combination of measures and countermeasures has hiked US and global tariff rates to centennial highs."
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