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IMF upgrades economic outlook and US consumer sentiment improves
Scripps News ^ | July 29, 2025 | Simon Kaufman , Maya Rodriguez

Posted on 07/29/2025 6:43:46 PM PDT by E. Pluribus Unum

New economic data shows signs of resiliency with tariff uncertainty still causing concerns.

A batch of new economic indicators was released Tuesday in addition to a new report from the International Monetary Fund about the global economic outlook.

The report and fresh data shed new insight into the state of the U.S. and global economies.

IMF releases global economic outlook

The International Monetary Fund projected global economic growth of 3% for 2025 in a new report released Tuesday.

That projection is down from 3.3% in 2024, but it's an improvement over the 2.8% growth it projected for the year in April, shortly after President Donald Trump initially announced widespread tariffs.

The IMF also upgraded its outlook for the U.S. economy to 1.9% growth this year. That's down from 2.8% last year but better than that 1.8% projected earlier this year.

The IMF labeled its report "Tenuous Resilience Amid Persistent Uncertainty" and noted fears of an economic slowdown eased when President Trump relaxed some previously proposed tariff policies.

"This modest decline in trade tensions, however fragile, has contributed to the resilience of the global economy so far," said IMF chief economist Pierre-Olivier Gourinchas.

China's economy is expected to grow 4.8% this year, and India's is projected to grow 6.4%.

The IMF also upped its projection on world trade growth for the year to 2.6%. That's down nearly a full point from last year but up nearly as much from April. But tariffs are projected to impact trade more next year with the IMF forecasting just 1.9% growth in trade in 2026.

U.S. consumer confidence rises slightly

American consumers are feeling marginally better about the economy.

The Conference Board's consumer confidence index inched up by two points, to 97.2 in July, up from 95.2 in June, according to new data released Tuesday.

Consumers' feelings about their current economic situation dropped slightly.

The Conference Board says...

(Excerpt) Read more at scrippsnews.com ...


TOPICS: Business/Economy; Foreign Affairs
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1 posted on 07/29/2025 6:43:46 PM PDT by E. Pluribus Unum
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