IMF Lifts US Growth Forecasts on Lower Tariffs, Boost From One Big Beautiful Bill Act

Contact Your Elected Officials

Global growth forecast nudged higher alongside the U.S. upgrade, but downside risks remain.

The International Monetary Fund (IMF) has raised its U.S. economic growth outlook, citing easing trade frictions and fiscal stimulus from the One Big Beautiful Bill Act, even as the global agency warned that tariff risks and inflation pressures remain.

The IMF said in its latest World Economic Outlook (WEO) report, released on July 29, that it now expects the U.S. economy to expand by 1.9 percent in 2025 and by 2 percent in 2026. That’s up 0.1 and 0.3 percentage points, respectively, from the IMF’s projections in April, when it expected higher tariffs and tighter financial conditions than have since materialized.

The upgrade reflects a drop in the effective U.S. tariff rate to 17.3 percent from a previously expected 24.4 percent, looser financial conditions aided by a weaker dollar, and new incentives for corporate investment under the One Big Beautiful Bill Act. The IMF staff estimated that the Trump-endorsed tax-and-spending measure could raise U.S. output by about 0.5 percent on average through 2030.

The upward revision to growth for the full 2025 comes despite a brief contraction in output early this year, when GDP shrank at a 0.5 percent annualized pace in the first quarter. That decline reflected a surge in imports as companies rushed to stockpile goods ahead of higher tariffs—a factor that subtracts from gross domestic product (GDP) calculations even though it pointed to strong underlying demand and investment.

The IMF’s more optimistic outlook for the U.S. economy comes on the same day that data from the Conference Board showed Americans have grown more confident about future business conditions and incomes. The Conference Board’s consumer confidence index ticked up to 97.2 in July from 95.2 in June, reversing last month’s slide. The forward-looking expectations index jumped 4.5 points, while the present situation index slipped slightly amid concerns about job availability.

“Of course, the consumer is confident—their investments are rising almost daily, earnings are better than expected, and the tariff scare is muted,” Gina Bolvin, president of Bolvin Wealth Management Group, told The Epoch Times in an emailed statement.

By Tom Ozimek

Read Full Article on TheEpochTimes.com

The Epoch Times
The Epoch Timeshttps://www.theepochtimes.com/
Tired of biased news? The Epoch Times is truthful, factual news that other media outlets don't report. No spin. No agenda. Just honest journalism like it used to be.

A Few Fun Alternatives to the”Gory Stuff” at Halloween

Halloween has gone off the rails with gore through the decades.  But there are ways to enjoy the "scary stuff" without giving into darker, pagan alliances.  

Germany Stands To Lose & Poland To Gain From The EU’s Latest Energy Move

The US is geostrategically re-engineering Europe at Germany’s expense in order to facilitate Russia’s post-Ukraine containment.

EBT Serfs Threaten Violent Mass-Shoplifting Spree if Food Stamps Cut

The EBT serfs of the underclass may be in for a rough ride come November, when mommy government is slated to wean them off the teat of state.

The Real Reason Why the Left is Unhinged

Nine out of thirteen of the original states required you to be a Bible believing Christian to serve in government at the time of the founding.

The Sacrificial Lambs of the Riyadh Standup Scene

Which is the greater injustice: jailing political dissidents, or millions dead from pharma crimes with no accountability for those responsible?

ICE Tracker Planned by Democrats Could Endanger Agents, Bondi Says

AG Pam Bondi warned Democrats’ plan for an online platform tracking ICE in LA could put federal agents at risk of harassment or violence.

Trump Responds to Report He’s Seeking $230 Million From DOJ for Past Investigations

President Trump acknowledged the odd position he’s in given that the lawsuit was launched when he was a private citizen: ‘I’m suing myself.’

Food, Drink Companies Launch New Group in Bid for National Food Standards

PepsiCo and major food makers launched a coalition urging national standards for ingredient safety and labeling to replace inconsistent state regulations.

With CDC Reports on Hold Amid Shutdown, Private Groups to Launch Alternative

Private organizations are planning an alternative to the CDC’s weekly MMWR publication, sometimes known as the voice of the public health agency.

Trump Calls off Meeting With Putin, White House Says

White House says Secretary Rubio and Russia’s Lavrov had a productive call; no further meetings or Trump-Putin talks are planned soon.

President Signs Rare Earth Agreement With Australia’s PM

President Trump hosted Australian PM Albanese at the White House, where both leaders signed a new agreement on rare earth mineral cooperation.

Trump Says Insurrection Act Is ‘Strongest Power a President Has’

President Trump detailed plans to invoke the Insurrection Act to address rampant crime, calling it the “strongest power a president has.”

Army Corps of Engineers to Pause $11 Billion in Projects During Shutdown: Vought

Russ Vought, director of the White House’s OMB, has added to the growing pile of federal projects paused during the government shutdown.
spot_img

Related Articles

Popular Categories

MAGA Business Central