IMF Forecasts Global Economic Slowdown Amidst Expected Negative Supply Shock
The IMF warns of a significant global economic slowdown due to rising uncertainties from President Trump’s tariff threats.
In its latest World Economic Outlook Report, the IMF cites tariffs as a major negative supply shock, which reallocates resources, reduces productivity, and increases costs. The IMF has revised its global growth forecast downward, anticipating a 1.5% reduction in global trade growth. While the economy has stabilized after previous shocks.
The tariff-driven uncertainty is expected to limit growth in the near term. With a slight recovery predicted next year.
Clever Robot News Desk 28th April 2025
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