{"id":334134,"date":"2025-04-24T19:29:59","date_gmt":"2025-04-24T13:59:59","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=334134"},"modified":"2025-04-25T18:28:36","modified_gmt":"2025-04-25T12:58:36","slug":"global-growth-slows-due-to-policy-tensions-says-imf","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/global-growth-slows-due-to-policy-tensions-says-imf\/","title":{"rendered":"Global growth slows due to policy tensions, says IMF"},"content":{"rendered":"

Source<\/strong>: The post Global growth slows due to policy tensions, says IMF has been created, based on the article \u201cIMF outlook: The good, the bad and the unsaid<\/strong>\u201d published in \u201cLive Mint<\/strong>\u201d on 24 April 2025. Global growth slows due to policy tensions, says IMF.<\/strong><\/p>\n

\"Global<\/p>\n

UPSC Syllabus Topic:<\/strong> GS Paper3- Economy-growth, development and employment.<\/p>\n

Context<\/strong>: The IMF\u2019s April 2025 World Economic Outlook presents mixed signals. While fears of a global recession are unfounded, global growth is slowing due to rising trade tensions and policy uncertainties. This slowdown is self-inflicted and not due to any natural or pandemic-like disruption.<\/p>\n

Global Economic Outlook<\/strong><\/h2>\n
    \n
  1. Slower Growth but No Recession: <\/strong>The global economy is slowing but not shrinking. Growth is projected at 2.8% in 2025<\/strong>, down 0.5 points<\/strong> from the January forecast. For 2026, growth is expected to be 3%<\/strong>, 0.3 points lower<\/strong> than earlier estimates. This slowdown doesn\u2019t meet the recession definition of two straight quarters of negative growth.<\/li>\n
  2. Trade Growth Declines More Sharply:<\/strong> Trade, though initially resilient, is weakening. Global trade growth is expected to fall to 1.7% in 2025<\/strong>, a major downward revision<\/strong>. Businesses had rerouted flows effectively, but the IMF warns this may no longer be enough.<\/li>\n<\/ol>\n

    Diverging Country Impacts<\/strong><\/h2>\n
      \n
    1. India Holds Steady:<\/strong> India\u2019s economy is forecast to grow at 6.2%<\/strong>, only 0.3 points<\/strong> lower than January\u2019s prediction. This remains close to the RBI<\/strong>\u2019<\/strong>s estimate of 6.5%<\/strong>, showing relative strength amid global uncertainty.<\/li>\n
    2. Sharp Cut for the United States:<\/strong> The US faces the largest downgrade. Growth is now projected at 1.8%<\/strong>, nearly one full point<\/strong> below earlier estimates. This includes a 0.4-point hit from new tariffs<\/strong>. Demand was already weakening before the tariff announcements, and rising policy uncertainty added to the decline.<\/li>\n<\/ol>\n

      Trade Policy and Global Risks<\/strong><\/h2>\n
        \n
      1. Tariffs Fuel the Downturn:<\/strong> The US has raised its effective tariff rate to levels above those seen in the Great Depression. Retaliatory tariffs from major economies are raising global trade barriers and hurting confidence.<\/li>\n
      2. Uncertain Future for Global System:<\/strong> The IMF warns of a reset in the global economic order shaped over 80 years. Growth now hinges on how nations tackle tensions and embrace reform.<\/li>\n<\/ol>\n

        Key Takeaway<\/strong><\/p>\n

        This slowdown is not caused by external shocks<\/strong>, but by policy choices<\/strong>, mainly from the US. The IMF hints that the turmoil is man-made<\/strong>, and that the consequences\u2014especially for the US\u2014may soon become visible.<\/p>\n

        Question for practice:<\/strong><\/p>\n

        Examine how policy choices, especially by the United States, have contributed to the global economic slowdown as highlighted in the IMF\u2019s April 2025 World Economic Outlook.<\/p>\n","protected":false},"excerpt":{"rendered":"

        Source: The post Global growth slows due to policy tensions, says IMF has been created, based on the article \u201cIMF outlook: The good, the bad and the unsaid\u201d published in \u201cLive Mint\u201d on 24 April 2025. Global growth slows due to policy tensions, says IMF. UPSC Syllabus Topic: GS Paper3- Economy-growth, development and employment. Context:… Continue reading Global growth slows due to policy tensions, says IMF<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":334378,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230],"tags":[216,8184,10506],"class_list":["post-334134","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-9-pm-daily-articles","tag-gs-paper-3","tag-indian-economy","tag-livemint","entry"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/04\/Global-growth-slows-due-to-policy-tensions-says-IMF.png?fit=1280%2C850&ssl=1","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/334134","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=334134"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/334134\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/334378"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=334134"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=334134"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=334134"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}