The International Monetary Fund (IMF) has upgraded its growth forecast for the UK economy this year, but has also warned about the possible impact of Donald Trump’s economic plans.
The global institution upgraded its prediction for UK growth to 1.6% for this year from its previous estimate of 1.5%.
But it said a threatened wave of tariffs by incoming US president Trump could make trade tensions worse, lower investment, and disrupt supply chains across the world.
The IMF also said although tariffs, tax cuts and deregulation could boost the US economy in the short term, they could ultimately backfire.The International Monetary Fund (IMF) has upgraded its growth forecast for the UK economy this year, but has also warned about the possible impact of Donald Trump’s economic plans.
The global institution upgraded its prediction for UK growth to 1.6% for this year from its previous estimate of 1.5%.
But it said a threatened wave of tariffs by incoming US president Trump could make trade tensions worse, lower investment, and disrupt supply chains across the world.
The IMF also said although tariffs, tax cuts and deregulation could boost the US economy in the short term, they could ultimately backfire.
The prospect of higher taxes being introduced on imports to the US is concerning many world leaders because they will make it more expensive for companies to sell their goods in the world’s biggest economy.
Tariffs are a central part of Trump’s economic vision – he sees them as a way of growing the US economy, protecting jobs and raising tax revenue – and has threatened to issue tariffs against China, Canada and Mexico on day one of his presidency next week.
He has also said he would impose 100% tariffs on the BRICS bloc of nine nations if they were to create a rival currency to the US dollar.
The IMF said such policies could set the scene for an inflationary boom followed by a bust and could weaken US Treasury bonds as a safe bet.
As well as upgrading its outlook for the UK, the IMF suggested the UK economy would perform better than European economies such as Germany, France and Italy over the next two years.
The improved forecast could be a boost for Chancellor Rachel Reeves, who has faced pressure over her policy decisions this week, after figures showed the economy had flatlined.
Labour has made growth its key objective, but Reeves has admitted the government has to “do more to grow our economy”, in order to boost living standards.
The latest IMF figures suggested the UK economy had weaker growth last year than the organisation had expected.
Responding to the IMF’s report, Reeves highlighted that the UK was the only G7 economy, apart from the US, to have its growth forecast upgraded for 2025.
Forecasts are never perfect given the many factors that affect economic growth – from geopolitics to the weather. But such reports can point in the right direction, especially where they align with other predictions.
Source: BBC
Drump’s economic policies equal disjointed nonsense and self imposed injuries .He doesn’t even know how tariffs work and he’s personally been bankrupt 6 times.
I hope the trade agreement with Africa will not be affected, otherwise Africa will be in more problems. So, it’s imperative for Africa to build more trade alliances east, west, south and north to cushion itself.
kindly thank you
Let’s just sort out our own mess here at home. Too much tiktok by people entrusted but no action, common man still wallowing in abject poverty worsening by the day.
Exactly Africa will be fine we have all the minerals plus Usa need a foot hold here
what people should know this is East against West and has nothing to do with us
IMF should have warned this GRZ to put its act together instead
Trump is the man
Man for what? Trump or no Trump, the wallowing in poverty for the common man in Zambia will continue. Nothing changes. It’s just the same with sworn in at 10, dollar picks at 14.
The fighting in the Eastern Europe as well as the Middle East have first made unbearable distortions in trade and world economic performance. Impending Donald’s tarriffs will compound the problemeven more. While the new America First policy will only work on isolating the USA, the Global South of more than 35 countries, with China as a powerhouse, should unite and trade among themselves. A blessing in disguise instead of lamenting.
After all, Africa is a sh-t hole.
Trump policy will not make any difference to
Zambia and Africa.we will continue our struggle with IMF as usual.