The IMF has revised its global growth forecast to 3% for 2025, crediting recent progress in global trade negotiations. Trump’s decision to reduce tariffs on key trading partners has helped reinvigorate global commerce.
The 2026 forecast was also nudged upward to 3.1%. Pierre-Olivier Gourinchas stated that the retreat from protectionism has helped stabilize international markets and restored growth potential.
The UK saw a slight improvement, with its growth forecast now at 1.2%. Chancellor Rachel Reeves reaffirmed the country’s leadership in European growth and emphasized investment in housing and public works.
Markets have responded positively to U.S. trade compromises, which have included energy export agreements with the EU and Asia. These pacts are seen as instrumental in the global economy’s recovery.