The International Monetary Fund has raised its global economic growth forecast

ChainCatcher news, the International Monetary Fund (IMF) has a slightly optimistic view on the global economic outlook and has also raised its expectations for the U.S. economy. In the latest World Economic Outlook released today, the IMF projects that the global economy will grow at a "steady but not very bright" rate of 3.3% this year, and will again grow by 3.3% by 2026. The new outlook for 2025 is 0.1 percentage points higher than the 3.2% predicted in the October report.

The IMF also expects that, driven by strong domestic demand, the U.S. economy will grow by 2.7% this year, which is 0.5 percentage points higher than the October forecast. However, IMF officials warned that if President-elect Trump follows through on his threats to impose broad tariffs on all U.S. imports from countries like Canada and Mexico, the U.S. could face higher inflation. IMF Research Director Pierre-Olivier Gourinchas stated, "Raising tariffs or restricting immigration would act like a negative supply shock, reducing output and increasing price pressures." (Jin Shi)