IMF raises global growth forecast despite US-China trade tensions

The IMF has slightly raised its 2025 global growth forecast to 3.2% from 3.0%, following better-than-expected tariff conditions and trade deals. However, it warned that a renewed U.S.-China trade war, particularly new tariffs threatened by President Trump, could slow growth significantly. The IMF also noted that global growth has been supported by factors like a strong private sector, fiscal stimulus in Europe and China, and a boom in AI investments. The U.S. is projected to grow at 2.0% in 2025, while the IMF left its forecast for China unchanged at 4.8%. The IMF also predicted stable inflation in most regions, though inflation risks rise in the U.S.

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