The International Monetary Fund cuts global growth expectations by 0.5 % amid American tariffs: “New Age” – national

The United States and Global Economies may slow down in the wake of President Donald Trump’s tariff and the uncertainty they created, International Monetary Fund He said on Tuesday.

The International Monetary Fund said that the global economy will only grow 2.8 percent this year, a decrease from its expectations in January by 3.3 percent, according to its latest global economic outlook. In 2026, global growth will be three percent, as the box predicts, and it is also less than its previous estimation of 3.3 percent.

The Fund believes that the two largest economies in the world, China and the United States, weaken: American economic growth will reach only 1.8 percent this year, a sharp decrease from its previous 2.7 percent forecasts and a full percentage less than its expansion 2024. International Monetary Fund. Do not expect an American stagnationAlthough it raised one possibilities this year from 25 percent to about 40 percent.

China is now expected to expand four percent this year, and next, a decrease of half a point from its previous forecast.

“We are entering a new era,” said Pierre Olivier Gurinchas, the chief economist of the International Monetary Fund. “This global economic system that has been working over the past eighty years is a reset.”

The predictions emphasize the widespread influence of both the tariffs and the uncertainty they created. The International Monetary Fund said that every country in the world is affected, through the high import taxes in the United States, which has now raised the United States’s intermediate duties to about 25 percent, which is the highest level in a century.

The predictions are largely in line with the expectations of many economists in the private sector, although some are afraid that the recession will be increasingly possible. Economists at JPMorgan say that the chances of American recession are now 60 percent. The Federal Reserve also expected that growth will weaken this year, to 1.7 percent.

The International Monetary Fund is the 191 -state lending organization that promotes economic growth and financial stability and reducing global poverty.

Gurinchas said that the increased uncertainty about import taxes led to the International Monetary Fund to take the extraordinary step of preparing many different scenarios for future growth. Its expectations were completed on April 4, after the Trump administration announced the full definitions of nearly 60 countries, along with the duties of approximately 10 percent.

These duties were stopped on April 9 for 90 days. Gurinchas said that the temporary suspension has not largely changed the expectations of the International Monetary Fund because the United States and China have imposed such a sharp tariff on each other since then.

The Trump administration has slapped duties on cars, steel and aluminum, as well as import taxes of 25 percent on most commodities from Canada and Mexico. The White House also imposed 10 percent of customs duties on almost all imports, and a large duty of 145 percent on goods from China, despite the exemption of smartphones and computers. China has averaged for 125 percent for American goods.

The International Monetary Fund said that the uncertainty surrounding the movements of the Trump administration is likely to be largely weighing the American and global economies. Gornshas warned in a blog publication, that most of the circulating goods are parts that feed the final products, and the definitions of supply chains may be disrupted, similar to what happened during the epidemic.

He wrote, “The companies facing incredible in the market will stop temporarily in the short term, reduce investment and reduce spending,” he wrote.

The US tariffs are also expected to reach less sophisticated countries, as Mexico’s economy is expected to shrink this year by 0.3 percent, a decrease from the previous projection of 1.4 percent of growth. South Africa is expected to grow only by one percent this year, a decrease from 1.5 percent in January.

Gornshas said that although the American economy will suffer from a shock in the supply, China is expected to suffer from a decrease in demand with the low exports of the United States.

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Inflation is likely to increase in the United States, as it rose to about three percent by the end of this year, while it will not change a little in China, the International Monetary Fund expected.

In his blog publication, Gourinchase admitted that there is “a sharp perception that globalization has unfairly led to the displacement of many local manufacturing functions,” adding that “there is some merit for these grievances.”

But he added that “the deep power behind this decline is technological progress and automation, not globalization.” Gourinchas pointed out that both Germany, which has the surplus of merchandise trade and the United States, which has a deficit, has seen that the factory production is still relative in recent decades even with low automation in manufacturing.

The International Monetary Fund expects to take definitions on a large part of the Chinese economy, but it is also expected to compensate for an additional spending from the Chinese government a lot of strike.

The European Union is expected to grow more slowly, but the blow from the definitions is not large, partly because it faces American duties less than China. In addition, some strike will be compensated for the customs tariff through the strongest government spending by Germany.

It is expected that the economies of the 27 countries that use the euro will expand by 0.8 percent this year and 1.2 percent next year, a decrease of only 0.2 percent in both years of the expectations of the International Monetary Fund in January.

Growth expectations in Japan have been distinguished to 0.6 percent this year, and next, 0.5 percent and less 0.2 percent than January, respectively.

In a separate report on Tuesday, the International Monetary Fund warned that “global financial stability risks have increased significantly”, as well as deteriorating economic expectations. The Fund pointed out that some stock and bond prices remained high despite the recent market that resulted in the Trump tariff – which means that it is vulnerable to more declines.

The International Monetary Fund also warned that “some financial institutions can be pressured in the volatile markets,” noting in particular to severe debt hedge funds, asset management and risk companies that will be forced to raise funds by selling investments in a criminal market already.

–Economy writer AP Paul and Yazman contributed to this report.