The IMF has raised its 2025 forecast for global growth to 3%, thanks to improved trade dynamics. Donald Trump’s shift away from punitive tariffs has helped revive international trade and strengthen cross-border investment.
With the 2026 forecast also upgraded to 3.1%, the Fund’s latest assessment reflects optimism based on broad cooperation between major economies. This comes after 2024’s growth reached 3.3%.
The UK’s growth is now expected to hit 1.2%, a positive sign amid global uncertainty. Chancellor Rachel Reeves emphasized Britain’s investment strategy as key to delivering economic resilience.
Markets that were once rattled by trade threats have recovered after deals capped tariffs and opened new export routes—especially for U.S. energy and agricultural goods.
IMF Says Global Economy Gaining Speed as Trade Wars Cool
