The International Monetary Fund has downgraded its forecast for economic growth in most countries, predicting that tariffs will disrupt trade the world over.
Global economic growth is expected to slow to 2.8% this year from 3.3% last year, before rising 3% next year.
Three months ago, the IMF had forecast a continuation of 3.3% growth in both 2025 and 2026.
The new forecasts were published as the global finance ministers convene in Washington for the IMF spring meetings, where UK chancellor Rachel Reeves is scheduled to make a speech in support of global free trade and meet with US counterpart Scott Bessent to try and agree on an exemption to US tariffs.
Within the report, US gross domestic product growth was downgraded by the Washington-based fund to 1.8% this year, well below the 2.7% forecast in January.
For 2026, the fund's estimate for US growth was cut to 1.7% from the 2.1% predicted three months ago.
For the UK, GDP is forecast to grow 1.1% in 2025, down from 1.6% forecast in January. For 2026, economic growth is seen at 1.4%, down from 1.5%.
"The swift escalation of trade tensions and extremely high levels of policy uncertainty are expected to have a significant impact on global economic activity," the IMF said in its latest World Economic Outlook report.
Risks to global financial stability have also "increased significantly", said IMF Financial Counselor Tobias Adrian, "due to heightened economic policy uncertainty and rising market volatility."
He said the decline in investor confidence and the tightening of global financial conditions is "putting downside pressure on economic activity."