23rd April 2025

IMF Warns of Global Slowdown 

• The International Monetary Fund (IMF) has revised its global growth forecast downward to 2.8% for 2025, citing the impact of widespread tariffs and heightened trade tensions.

• The U.S. economy is now projected to grow at 1.8%, while China's growth forecast has been reduced to 4%.

• The IMF highlights that the recent tariffs have disrupted global supply chains and increased the risk of a U.S. recession, now estimated at 40%. ​
  Inflation in the U.S. is expected to reach 3%, with the IMF warning of increased financial stability risks due to high levels of public debt. ​

• The IMF urges countries to maintain adequate liquidity and prepare for potential economic shocks resulting from ongoing trade disputes.

• Despite a temporary 90-day pause in new tariffs, the IMF cautions that persistent issues between the U.S. and China suggest lasting economic consequences.

European Business Growth Stalls as Trade Uncertainty Weighs

• Recent surveys indicate that business growth in the eurozone has stalled in April, with erratic U.S. trade policy contributing to the slowdown.
  The manufacturing and services sectors have experienced a decline in new orders, reflecting subdued demand amid global trade tensions.

• Analysts express concern that the current economic climate may lead to a prolonged period of stagnation in the region. ​

• The European Central Bank faces increasing pressure to adjust its monetary policy in response to the weakening economic indicators. ​
  Investor confidence has been shaken, increasing volatility in European financial markets. ​
  The situation underscores the broader impact of global trade disputes on regional economies and the importance of coordinated policy responses.

News written by Zhangir Meshitbek | Published by Zhangir Zhangaskin