IMF SOUNDS Alarm: Trade WAR Fears Shake Global Economy
— The International Monetary Fund (IMF) has slashed its outlook for the world economy. The group blames rising trade fights and new U.S. tariffs for slowing growth across the globe. President Trump’s tariffs, including a 10% tax on all imports, have led China and Europe to hit back with their own penalties. This back-and-forth is making markets nervous. Even with these troubles, the IMF does not expect a worldwide recession soon. Instead, it predicts steady growth of 3.3% in both 2025 and 2026. But the fund warns that ongoing trade battles are hurting trust between countries and slowing down progress. IMF boss Kristalina Georgieva compared today’s situation to “a pot that was bubbling for a long time and is now boiling over.” She says smart policy choices are needed as some countries face higher prices because supply chains are breaking down. The IMF wants leaders to act wisely so people can trust global markets again. Next year’s big meeting will focus on fixing these trade fights before things get worse for everyone.