IMF lowers economic growth forecasts for China, US

The trade dispute is having an increasingly large impact on the world's two leading economies. Photo: SCMP

The IMF released its new World Economic Outlook report as a series of tariffs imposed by US President Donald Trump has roiled financial markets, weighing on the global economic outlook.

The US economic growth rate in 2025 is forecast at 1.8%, down 0.9% from the forecast in January.

The US decline is higher than the world average. The IMF reduced its estimate of global economic growth in 2025 by 0.5%, to 2.8%.

“The downward revision is the result of heightened policy uncertainty, trade tensions and a weaker demand outlook due to slower-than-expected consumption growth,” the IMF said.

The new report also revised up US inflation by 1%, to 3%.

The IMF also lowered China's growth forecast from 4.6% to 4%, due to the country's deep trade ties with the US.

China's economy grew 5.4% in the first quarter of 2025.

The IMF forecasts global trade growth will slow to 1.7% in 2025, down 1.5% from its January 2025 forecast.

"Our policy recommendations call for caution and improved cooperation. The top priority is to restore trade policy stability and create mutually beneficial agreements," the IMF stressed.

(According to SCMP, Wall Street Journal)

Source: https://hanoimoi.vn/imf-ha-du-bao-tang-truong-kinh-te-cua-trung-quoc-my-700001.html