The IMF has raised its global growth estimate to 3% for 2025, citing a more stable trade landscape. The withdrawal of some of Trump’s more aggressive tariff threats has reinvigorated international economic activity.
The Fund’s 2026 forecast rose to 3.1%, building on 2024’s solid performance. Chief Economist Gourinchas said that reduced geopolitical friction is encouraging global investment.
In the UK, the growth projection moved up to 1.2%. Chancellor Rachel Reeves reiterated that infrastructure and housing development remain at the core of Britain’s economic strategy.
Recent agreements limiting tariffs in exchange for energy and agricultural imports have steadied global markets. Analysts say these deals helped prevent an escalation of trade wars.