Global economic stability faces mounting pressure as trade policy uncertainties reshape international markets, according to the International Monetary Fund. Pierre-Olivier Gourinchas, IMF Chief Economist and Director of Research, highlighted the cascading effects of recent U.S. tariff measures and retaliatory actions by partner economies during a briefing this week.
The IMF now projects 2.8% global GDP growth for 2025—a sharp 0.5 percentage point reduction from earlier forecasts. Analysts suggest this revision reflects deepening concerns about supply chain disruptions and reduced cross-border investment flows, particularly in Asia's export-driven economies.
While Gourinchas avoided singling out specific countries, he emphasized the disproportionate impact on manufacturing hubs and technology sectors. Market watchers note that Vietnam, Malaysia, and South Korea could face immediate challenges, potentially affecting everything from semiconductor production to renewable energy infrastructure projects.
The report arrives as businesses worldwide recalibrate strategies amid shifting trade dynamics. Emerging markets are exploring regional partnerships to mitigate risks, while multinational corporations weigh reshoring options against rising operational costs.
