IMF upgrades global growth forecast as tariffs ease

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The International Monetary Fund (IMF) has predicted stronger global economic growth than it forecast in April in part due to some US tariffs on goods being softened.

It predicted growth of 3% in 2025 and 3.1% in 2026, up from 2.8% and 3% in its previous report.

A surge in US imports as firms tried to beat impending higher import taxes and actions by some governments to boost growth bumped up its latest forecast.

However, higher tariffs and more uncertainty could lead to weaker growth and slower economic activity, the IMF warned.

The IMF, which is a group of 190 countries that work together to try to stabilise the global economy, said the upgrade to its predictions included so-called trade "front-loading" in recent months - referring to the rush of imports into the US.

American firms rushed products into the country earlier this year to try to get ahead of new taxes on imports pledged by President Donald Trump.

The IMF said this created risks that could add to any future economic shocks, including companies, having too much stock, making future imports less necessary.

Also, firms may have to pay more to store goods, and there was also a risk of items becoming obsolete, it said.