BBC
The International Monetary Fund has warned that US economic policies under incoming president Donald Trump could hit the rest of the world and ultimately backfire on the US.
The IMF says a threatened wave of tariffs could make trade tensions worse, lower investment, hit market pricing, distort trade flows and disrupt supply chains.
Although tariffs, tax cuts and deregulation could boost the US economy in the short term, it could set the scene for an inflationary boom followed by a bust, it said.
This could weaken US Treasury bonds as a safe bet, it added.
The IMF predicted “stable, albeit lacklustre” global growth of 3.3% in both 2025 and 2026, below a historical average of 3.7%.
Its 2025 forecast was largely unchanged from a previous one, mainly because it expects higher US growth than previously predicted to offset lower growth in other major economies…
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