Global economic growth is expected to reach 3% in 2025, the IMF announced, as international trade tensions ease. The reduction of U.S. tariff threats, particularly under former President Trump, has encouraged a more stable global economy.
The outlook for 2026 also improved slightly, climbing to 3.1%. These upgrades follow a year of stronger-than-expected growth in 2024, signaling resilience in the face of past policy shocks.
UK projections rose to 1.2%. Chancellor Rachel Reeves highlighted the importance of government-backed development programs in maintaining growth during uncertain times.
Markets have been reassured by trade deals that replaced tariffs with commodity commitments. These agreements are widely viewed as key to softening earlier protectionist pressures and driving international cooperation.