IMF Says US Will Take the Hardest Economic Hit Among Advanced Economies

The US will be the most severely impacted advanced economy in 2025, according to the IMF, because of growth worries and unstable trade policy.

A new prediction from the International Monetary Fund (IMF) predicts that increased uncertainty driven by trade tariffs would cause the United States to take the biggest economic hit among advanced economies this year.

The IMF has drastically lowered its 2025 US growth forecast to 1.8% in its most recent outlook, a substantial decrease from the 2.7% it had projected in January. The downgrading is a reflection of growing political tensions and trade policy instability worries that are starting to unnerve both investors and politicians.

In spite of the grim prediction, Tuesday saw the US financial markets recover from Monday’s losses. The earlier decline came after President Donald Trump openly attacked Federal Reserve Chair Jerome Powell, calling him a “major loser” for failing to lower interest rates in the face of ongoing inflation worries.

The top economist for the IMF emphasized how crucial it is to preserve public confidence in central banking organizations. She emphasized the necessity for stability and independence in monetary policy decisions by saying, “It is crucial that everyone continues to be convinced that central banks will do what is necessary to bring inflation under control.”