Greater global protectionism will endanger the world’s growth outlook, the IMF has warned, as a possible Donald Trump victory in next month’s US election raises the prospect of sharp tariff increases.
In its latest forecast, just two weeks before the presidential vote, the fund said it expected the world economy to expand 3.2 per cent both this year and next.
But its World Economic Outlook cautioned that if higher tariffs hit a “sizeable swath” of world trade by mid-2025, it would wipe 0.8 per cent from economic output next year and 1.3 per cent in 2026.
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