Close Menu
News JournosNews Journos
  • World
  • U.S. News
  • Business
  • Politics
  • Europe News
  • Finance
  • Turkey Reports
  • Money Watch
  • Health
Editors Picks

Trump Commends Robert Prevost’s Election as Pope

May 8, 2025

Trump Administration Plans to Terminate Deportation Protections for Afghan Nationals

May 12, 2025

Tesla Sees 22% Increase in May Following Musk’s Departure from Trump’s DOGE

May 30, 2025

‘I didn’t know that’: Musk surprises Trump with revelation about his 2024 endorsement

February 19, 2025

Americans Can Use DOGE to Report Federal Regulatory Challenges

April 13, 2025
Facebook X (Twitter) Instagram
Latest Headlines:
  • Breast Cancer Survivor Battles Insurer Over Doctor-Recommended Annual Mammograms
  • New Legislation Ends Electric Vehicle Tax Breaks
  • Midday Stock Movers: FSLR, CRWD, DDOG, HOOD
  • CoreWeave Achieves First Deployment of Nvidia’s Blackwell Ultra
  • Staffing Cuts at National Parks Raise Safety Concerns for Summer Visitors
  • North Korea Criticizes U.S. DOJ for Targeting IT Workers in Corporate Espionage Scheme
  • Trump Signs Executive Order Increasing National Park Fees for Foreign Tourists
  • Europe’s Best Trade Strategy with U.S. Is a Minimal Agreement, Sources Indicate
  • Congressional Analysis Reveals Rising Prices for Fourth of July Barbeques
  • Man Dies from Rare Infection After Bat Bite in Australia
  • Firefighting Planes Sold Amid Forest Blazes
  • UN Expert Accuses Israel of Genocide Amid US Calls for Dismissal
  • Citizen Science Reveals Local Effects of Heatwaves in Maltepe
  • Microsoft Lays Off 830 Employees in Washington State
  • American Teen Detained in Antarctica During Solo Flight to Seven Continents
  • Poll Reveals Reasons Behind Americans’ Flag Display
  • Airlines Address Investors Following Strong Yet Economical July 4 Holiday Performance
  • Tech Giants Collaborate with Nuclear Plants to Address Rising AI Energy Demands
  • IDF Strives to Minimize Civilian Casualties Amid Hamas Strategies, Says Retired Colonel
  • Military Deploys 200 Marines to Support ICE Operations in Florida
Facebook X (Twitter) Instagram
News JournosNews Journos
Subscribe
Thursday, July 3
  • World
  • U.S. News
  • Business
  • Politics
  • Europe News
  • Finance
  • Turkey Reports
  • Money Watch
  • Health
News JournosNews Journos
You are here: News Journos » Money Watch » IMF Projects Slower U.S. Economic Growth in 2025 Amid Trade Tensions
IMF Projects Slower U.S. Economic Growth in 2025 Amid Trade Tensions

IMF Projects Slower U.S. Economic Growth in 2025 Amid Trade Tensions

News EditorBy News EditorApril 22, 2025 Money Watch 5 Mins Read

The International Monetary Fund (IMF) has provided a cautionary outlook on the U.S. economy, expecting sluggish growth of just 1.8% for 2025 amid increasing trade tensions and a rise in policy uncertainty. This latest forecast, presented in the IMF’s World Economic Outlook report, signals a downward adjustment from earlier predictions, emphasizing the potential negative impacts of the ongoing trade war initiated by the current administration. Furthermore, economists are increasingly concerned about the heightened possibility of a recession, suggesting a critical juncture for policymakers as they navigate these challenging economic waters.

Article Subheadings
1) Projections for U.S. Economic Growth
2) Inflation and Trade Policies
3) Impact of Tariffs on Businesses
4) Global Economic Considerations
5) Future Outlook and Risks

Projections for U.S. Economic Growth

The IMF forecasts that the U.S. economy will grow at a rate of 1.8% in 2025. This figure represents a significant reduction from earlier estimates, which projected a growth rate of 2.8% for the same period. The downgrade in projections reflects an overall context of increasing economic instability attributed primarily to the ongoing trade war between the U.S. and its major trading partners. In its report, the IMF indicated that the country’s growth for 2026 is expected to follow a similar trend, dropping slightly to 1.7%. These figures illustrate a worrying trend of declining economic momentum, raising questions about the efficacy of current trade policies and their implications for future growth.

Inflation and Trade Policies

In addition to growth projections, the IMF also anticipates a rise in inflation within the United States, forecasting that it will reach around 3% by the end of the year. This predicted increase in inflation is largely linked to the tariffs imposed on various imports. Federal Reserve Chair Jerome Powell has expressed concerns that these import taxes could further elevate inflationary pressures, affecting the purchasing power of consumers and the overall economic landscape. In light of these developments, President Donald Trump responded with criticism directed at Powell, suggesting that interest rates should be lowered instead. His remarks highlight the ongoing tension between fiscal policies and monetary policies as the nation grapples with economic challenges.

Impact of Tariffs on Businesses

The trade war has had palpable effects on a range of sectors, particularly U.S. small businesses and industries reliant on imported materials. The imposition of tariffs has created what the IMF describes as “a major negative shock to growth,” contributing to operational difficulties for many enterprises. Reports indicate that some small business owners are concerned that the rising costs from tariffs could force them to shut down operations entirely. As a result, many businesses are caught in a difficult predicament—struggling to absorb increased costs while trying to maintain competitive pricing. This ongoing turmoil reflects the broader ramifications of trade policy decisions that extend beyond mere economic figures.

Global Economic Considerations

The IMF’s report also signals a downturn in global economic growth, with forecasts dropping from 3.3% to 2.8% this year. This decline is indicative of a potentially widespread economic malaise fueled by trade tensions. In particular, the outlook for China, a key U.S. trading partner, has also deteriorated, with growth projections reduced to just 4%. As the world’s second-largest economy, fluctuations in China’s growth directly impact the global economy, emphasizing the interconnected nature of international trade and commerce. The anticipated risks associated with the trade war underscore the significant implications that U.S. tariffs hold for global markets.

Future Outlook and Risks

Looking forward, the IMF does not project a recession within the near term but acknowledges an increase in the likelihood of such an economic event occurring. The probability of a recession in the U.S. has risen to 37%, up from a previous estimate of 25%. Some market analysts, such as James Rossiter from TD Securities, suggest the chances may be as high as 50/50 given current conditions. The increasing uncertainty surrounding trade policies and their ramifications on domestic and global economic growth present substantial risks. As economic indicators evolve, stakeholders will be closely monitoring developments that could reshape both policies and expectations.

No. Key Points
1 The U.S. economy is projected to grow by only 1.8% in 2025, down from previous estimates.
2 Inflation is expected to rise to 3% due to imposed tariffs, affecting consumer purchasing power.
3 Tariffs are negatively impacting U.S. small businesses, potentially leading to closures.
4 Global economic growth is forecasted to slow, with significant implications for trade relations.
5 The likelihood of a recession has increased, raising concerns among analysts and policymakers.

Summary

In summary, the recent projections from the IMF shed light on the concerning trajectory of the U.S. economy in the context of escalating trade tensions and evolving policy uncertainty. With growth expectations reduced and inflation projected to rise, the implications of these economic dynamics are profound, not just for the nation but also for the global economy. Stakeholders must remain vigilant as they navigate these challenges, adapting their strategies to mitigate risks and capitalize on opportunities that may arise.

Frequently Asked Questions

Question: What is the predicted growth rate for the U.S. economy in 2025?

The IMF forecasts that the U.S. economy will grow at a rate of 1.8% in 2025.

Question: How are tariffs affecting inflation?

Tariffs are expected to contribute to an increase in inflation, with predictions of reaching around 3% by the end of the year, affecting overall purchasing power.

Question: What are the concerns regarding small businesses and tariffs?

Many small businesses are facing challenges due to rising costs from tariffs, which could potentially lead to closures if they cannot absorb these expenses while remaining competitive.

Banking Budgeting Consumer Finance Credit Cards Debt Management Economic Economic Indicators Economic Trends Entrepreneurship Financial Literacy Financial News Financial Planning growth IMF Investing Market Analysis Money Tips Personal Finance Projects Retirement Saving Side Hustles Slower Stock Market Tensions Trade U.S Wealth Management
Share. Facebook Twitter Pinterest LinkedIn Email Reddit WhatsApp Copy Link Bluesky
News Editor
  • Website

As the News Editor at News Journos, I am dedicated to curating and delivering the latest and most impactful stories across business, finance, politics, technology, and global affairs. With a commitment to journalistic integrity, we provide breaking news, in-depth analysis, and expert insights to keep our readers informed in an ever-changing world. News Journos is your go-to independent news source, ensuring fast, accurate, and reliable reporting on the topics that matter most.

Keep Reading

Money Watch

New Legislation Ends Electric Vehicle Tax Breaks

6 Mins Read
Money Watch

139 EPA Employees Placed on Leave After Criticizing Trump’s Environmental Policies

7 Mins Read
Money Watch

U.S. Labor Market Surprises with 147,000 New Jobs in June

5 Mins Read
Money Watch

Tesla Sales Decline Amid Backlash and Increased Competition

4 Mins Read
Money Watch

Lululemon Files Suit Against Costco Over Design Copyright Infringement

5 Mins Read
Money Watch

Dr. Phil’s Merit Street Media Files for Bankruptcy After Less Than Two Years

6 Mins Read
Mr Serdar Avatar

Serdar Imren

News Director

Facebook Twitter Instagram
Journalism Under Siege
Editors Picks

U.S. Closes Southern Border to Livestock Imports to Combat Deadly Fly Outbreak

May 11, 2025

Trump and First Lady Meet Freed Hostage Edan Alexander in Oval Office

July 2, 2025

Impact of Tariffs on U.S. Housing Market

March 4, 2025

Trump Advocates Tax Increases for Wealthy Amid Upcoming Bill Deadline

May 9, 2025

Former Priest Sentenced for Passport Fraud and Denied U.S. Citizenship

March 7, 2025

Subscribe to News

Get the latest sports news from NewsSite about world, sports and politics.

Facebook X (Twitter) Pinterest Vimeo WhatsApp TikTok Instagram

News

  • World
  • U.S. News
  • Business
  • Politics
  • Europe News
  • Finance
  • Money Watch

Journos

  • Top Stories
  • Turkey Reports
  • Health
  • Tech
  • Sports
  • Entertainment

COMPANY

  • About Us
  • Get In Touch
  • Our Authors
  • Privacy Policy
  • Terms and Conditions
  • Accessibility

Subscribe to Updates

Get the latest creative news from FooBar about art, design and business.

© 2025 The News Journos. Designed by The News Journos.

Type above and press Enter to search. Press Esc to cancel.

Ad Blocker Enabled!
Ad Blocker Enabled!
Our website is made possible by displaying online advertisements to our visitors. Please support us by disabling your Ad Blocker.