IMF Slashes Global Growth Forecasts

The IMF slashed global growth to 2.8% for 2025, down 0.5 points, citing U.S. tariffs at 100-year highs. 

U.S. growth drops to 1.8%, China’s to 4%, with trade tensions fueling uncertainty. Inflation is revised up to 4.3%, complicating monetary policy. Global trade growth has plummeted to 1.7%, reflecting the fragmentation of supply chains.

The demand for the U.S. dollar softens, but markets remain stable.

These dynamics threaten oil demand, as slower economic growth and trade disruptions could reduce consumption, potentially pushing oil prices lower despite recent spikes driven by sanctions.