A security guard is outside the building near the signs that announce the International Monetary Fund/Spring Meetings of the World Bank in Washington, DC, on April 17, 2025.
Jim Watson | AFP | Getty images
The International Monetary Fund on Tuesday degraded its growth forecasts for the main Asian economies in 2025, citing commercial tensions and “high political uncertainty.”
The IMF reduced its projections of 2025 GDP for China and India at 4% and 6.2% respectively, below its January or 4.6% and 6.5% forecast respectively.
The official GDP growth objective of China was established in “around 5%” by 2025, while India projected a 6.5% growth for its fiscal year 2025 that extended from April 2025 to March 2026.
The IMF also reduced Japan’s growth forecast at 0.6% of 1.1%.
Japan has a growth projection or 1.1% for its fiscal year 2025, which also extends from April 2025 to March 2026.
In a global basic, growth was reduced to 2.8% of 3.3% for all 2025, and the IMF says that the tariffs announced by the United States and its commercial partners were “a great negative shock for growth.”
In addition, he added that “the unpredictability with which these measures have bone deployment also have a negative impact on economic activity and perspective,” makes it more difficult than normal for consistent and timely projections.
The IMF forecast occurs in the middle of a broader trend of research firms and banks that reduce growth forecasts for Asian economies.
In early April, Goldman Sachs economists reduced their prognosis for China’s gross domestic product this year to 4.0% of 4.5%, citing the impacts of higher US tariffs on Chinese products.
Natixis also reduced his prognosis of China’s GDP to 4.2% this year, below 4.7% previously.
According to reports, Fitch also reduced its Indian growth forecasts to 6.2% of 6.3%, citing a global economic environment caused by the intense commercial war between the United States and China.
Since he assumed the position on January 20, the president of the United States, Donald Trump, has slapped tariffs on imports of steel, aluminum and motorcycles, Before announcing “reciprocal” massive tariffs in almost all countries of the world on April 2.
Just a week later, the “reciprocal” rates of the suspended thesis, leaving only an initial duty or 10% in all countries expect China.
After a Tit tariff splash per eye, American tariffs in China now have up to 245% in some articles, while China has imposed tariffs or 125% in US imports, promising “fighting until the end.”
In contrast, Japan and India have the tasks a more conciliatory position for Trump, and Japan sends a commercial delegation to speak with their American counterparts.
On April 17, Trump had praised “great progress” about commercial conversations, but Japan’s main negotiator, Ryosei Akazawa, had returned to Tokyo without treatment, saying that “it made clear the fees measures are the present that the reconsideras of Toesses are cut.
For India, Prime Minister Narendra Modi had on Monday with the vice president of the United States, JD Vance, and a reading of the Modi office said the two leaders “welcomed the significant progress in the negotiations for a bilateral commercial agreement of India-United States mutually beneficial states.”