IMF Upgrades Global Economic Outlook Amid Trump Trade Policies

The International Monetary Fund (IMF) has revised its global economic forecasts upwards for the near term, citing that President Donald Trump's trade policies have caused less damage than initially feared. The global economy is projected to grow by 3% this year, a slight increase from previous estimates.

The organization's chief economist, Pierre-Olivier Gourinchas, emphasized the resilience of the economy but warned of continued fragility due to ongoing trade tensions. Despite earlier concerns, the trade disruption appears less severe, although it continues to impact economic forecasts and performance.

In the United States, growth is expected at 1.9% this year. Meanwhile, China sees a boost with a projected 4.8% growth rate, attributed to lower-than-expected US tariffs and government spending. However, higher tariffs threaten to dampen trade growth next year, highlighting the persistent effects of Trump's trade policies.

(With inputs from agencies.)