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The International Monetary Fund (IMF) has cut its 2025 GDP growth forecast for the US deeper than that of China, as the tit-for-tat retaliations between the world’s two largest economies risk a prolonged decoupling. Tariff salvoes launched by US President Donald Trump have roiled financial markets while weighing heavily on the global economic outlook. The US economic growth rate is projected to be 1.8 per cent this year, down 0.9 percentage points from January’s forecast, according to the IMF’s World Economic Outlook report released on April 22, 2025. Pierre-Olivier Gourinchas, chief economist with the IMF, said sky-high tariffs contributed to a 0.4 percentage point reduction for the US estimate.