The IMF now projects global growth of 3% for 2025, citing a notable reduction in trade tension, particularly from the United States. This policy shift marks a major turnaround from earlier economic headwinds.
The Fund’s 2026 estimate is also up slightly at 3.1%. Officials say that steady trade flows and lower tariff risks are restoring investor confidence and global demand.
In the UK, growth expectations have climbed to 1.2%, positioning it ahead of other G7 economies. Rachel Reeves said this reflects the effectiveness of Britain’s long-term investment strategy.
Trump’s earlier stance on trade had dampened market activity. However, subsequent agreements limiting tariff increases—particularly on energy and industrial goods—have reversed that trend.