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.
Dude you are a peasant who has never seen a million dollar in your life and how do you know this billionaire with buildings across the globe knows nothing about tariffs. That’s why Biden messed up the economy letting juniors barely making six figures decide for him
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.
You think Trump cares about Africa? Trump wants a relationship between USA and the rest of the world that is similar to former slavemasters and sharecroppers.
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
I liken Donald Trump to a neighbor who minds his own business. After more than sixty years it’s either borrowing, debt restructuring or applying for HIPC status. Those who were born at independence are now grand parents but nothing has changed in terms of economy.
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.
I like him because he doesn’t interfere in other countries affairs. The African presidents are forced to legalize the same s**** things only by Obama and Biden…. not Trump. Some of the challenges you are facing is due to someone failing to legalize same s***** as this someone promised Biden.
Examples of Trump’s expansionist plans: Panama Canal, Greenland, the Gulf of Mexico, and Canada becoming a U.S. State. During his first term, he gave the Golan Heights to Israel against international law; he moved the U.S. embassy from Jerusalem from Israel’s capital …
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.
Please tell them… unless we change our tactics vis a vis our natural wealth.
HH presidency should take a leaf out of the trump rule book……. Put Zambia first
There is no need for most of the consumables for the mines to be imported, let’s manufacture those goods in Zambia……..
All uniforms…,,.. ZDF , workwear , should all be manufactured in Zambia…….
All those cereals like cornflakes imported from SA to be sold in Zambia should be forced to move production to Zambia or face 100% tariffs
MZGA…….make Zambia great again
FWD2031
Oh Spaka Surely you have heard about KK and his Zambianisation and Naturalisation
We had Dunlop, Land Rover, Art Engineering plus others who were making Heavy steel structures for the mines, Llyons Brooke Bond doing all canned foods and cereals, ALL made to vamoos ! Once bitten twice shy … and people like our friend DeJa Vue still singing his praises ??
There is a huge difference between Trump and HH Trump is vocal Very Vocal Our HH is the silent type
and its known still waters run very deep
Tikki
When were those industries with KK 40 years ago..,,,???
Times a change…….
If we can’t run those industries, let the manufacturers run them…..but from Zambia for the Zambian market…….otherwise it’s 100% tariffs……..
We have enough of an internal market to force manufacturers to move production to Zambia
FWD2031
Sometimes you make loads of sense, KAPS. Thanks
Simple tiny things like toothpicks, razor blades, ear buds, etc. are all imported items. Our copper, mukula wood, cobalt and other raw materials are sold out without adding value or benefiting Zambians. Hakainde was thought to alter the status quo, and improve matters but he is just like others, perhaps worse off. A false hope. We overated him. His taxation regime gives away to foreigners. Zambia First, like Zambia Forward, is a pipedream.
THE IMF HAS MADE LIFE DIFFICULT FOR THE MAJORITY HUMAN RACE, IF ECONOMIES WERE INDEPENDENT THE WORLD WORLD HAVE BEEN A BETTER PLACE TO LEAVE, THEY FUND WARS AND PROMOTE POVERTY, AM GLAD SOME AFRICAN LEADERS ARE AVOIDING THIS EVIL CARTEL OF THE WEST
You may be right but remember the IMF doesnt go looking for business it’s us who goes begging to them. Like any lending institution they put their T & C’s if we accept those where does the fault lie ??
Yeah just like our local shylocks eh?
Lessons for Zambia arising from USA pulling out of the WHO, entail that Zambia should devise ways of raising its own funds to support national health programs. Trained medical doctors can diagnose causes of many illnesses such as diabetes, TB, cancer etc. But in African societies there is a perception that some illnesses are attributed to the work of witchdoctors. However many people are wondering as to who hired the witchdoctor that framed the allegation that JJ Banda’s brother engaged two witchdoctors to harm the President?