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Buyers are going through the high -end Medston, UK, Wednesday, April 16, 2025.
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The International Monetary Fund lowered the UK growth forecast in 2025 in its latest economic outlook released on Tuesday, warning that this year’s US President Donald Trump’s trade tariffs, higher borrowing costs and increased energy prices will throw Dent.
In his reference book, the IMF predicted that the British economy would grow by 1.1%, decreasing by 0.5 percentage points than the previous forecast issued in January. Now the fund also expects that the UK will grow by 1.4% in 2026, which is 0.1 percentage points lower than in the previous estimate.
The figures were included in the IMF’s reference forecast, which does not include tariff ads made through April 4, for example, a 90-day pause on the highest duties that Trump initially announced.
The decrease for 2025 “reflects a lower transfer since 2024, the influence of recent tariff ads, increasing the yields of gilded and weaker private consumption against greater inflation as a result of regulated energy prices,” the IMF wrote in its world economic report.
The decrease is poured out by colder water on the UK’s working government, which has made the top priority of the economy and is already fighting the uncertainty representing trade tariffs from one of the largest trading partners, the USA, the USA, the USA, the USA, the US
Trump announced a basic 10% tariff for UK imports in the United States on April 2, despite Britain and the United States, which practically balanced trade when it comes to exchange of goods.
While the UK hopes it may conclude a trade transaction from the US, the Mercury position of the White House leader on trade and tariffs put financial institutions on the edge.
The latest decrease in the IMF for Britain repeats a similar decline in domestic forecasts. In February, the Bank of England has halved the UK growth projection for 2025 from 1.5% to 0.75%, warning of an uncertain global economic outlook and cutting inflation this year on the back of higher energy and water bills.
UK management for budget liability also in March halved the growth outlook For the UK in 2025, in 2025, it reduced its forecast from 2% to 1%.
Despite recent declines, the UK’s economy has recently shown some signs of life. Latest monthly growth data released earlier in April She showed that the economy grew up more than expected, 0.5% a month in February from zero in January. Meanwhile, national inflation cooled to the lower than 2.6% in March.
The Bank of England looks like a saf -diminish rates because it seems to balance growth with a predicted inflation rise. Economists are widely expected to reduce its key interest rate from 4.5% to 4.25% at the next monetary policy meeting in May.
Bright spots in the eurozone
Looking at the UK continental neighbors in the eurozone, the IMF predicted a slight decrease in the 2025 products, predicting that the euro -zone growth reached 0.8% in 2025 before being taken up to 1.2% in 2026.
“Increasing uncertainty and tariffs are key drivers of muted growth in 2025,” the fund said. It notes that compensation for the forces that support the modest device in 2026 include stronger consumption on the back of the real salary growth, as well as the predicted weakening in Germany after serious changes in its financial rule known as “debt”.
Spain, houses of rest, tax
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The IMF has nominated Spain as a vivid place in the euro area, stating that its growth “contrasts with sluggish dynamics elsewhere,” with the Mediterranean nation, presumably this year will expand its economy by 2.5% after growth of 0.2 percentage from the forecast made in January.
“This reflects a great transfer of more expected than expected, in 2024 and reconstruction after the flood,” the IMF reads.
However, Trump’s tariffs threw a shadow over a wider EU. The US president initially led a 20% “return” tariff for all goods coming from the European Union but stopped measures 90 days before the beginning of July, reducing the duty to 10% so far.
It looks like signing its own trade deal with the states at this time, the EU has stopped retaliation for 21 billion euros ($ 24.1 billion) of US goods “to ensure time and place for EU-WHO negotiations,” “” said the European Commission.
