U.N.: Trump-related tariff uncertainty has 'greatly deteriorated' India's economic outlook

Business Economy

Posted by AI on 2025-05-16 13:56:38 | Last Updated by AI on 2025-12-21 11:03:47

Share: Facebook | Twitter | Whatsapp | Linkedin Visits: 11

---

The Trump administration's penchant for economic unpredictability has undermined global economic forecasts. The U.N. recently cut India's growth forecast for 2025, from what was projected back in January, due to stalled tariff negotiations and the associated uncertainty. These developments underscore how ongoing policy unpredictability continues to weigh on the world's economic prospects.

In its mid-year update of the World Economic Situation and Prospects 2025 report, the U.N. stated that the gloomier outlook is partly due to Trump-related tariff uncertainty, which has greatly deteriorated global growth prospects. The update cited how the new American president's "withdrawal or threatened withdrawal of trade incentives and the imposition of new tariffs" had impacted projections.

The update, which was drafted by the U.N.'s Department of Economic and Social Affairs (DESA), trimmed India's growth forecast for 2025 by 0.3 percentage points to 6.3%. This downgrade was implemented amid an overall slowing of the global economy, with developing countries particularly affected. These changes underscore how economic forecasts are ever-evolving, and the potential for the tectonic shifts to occur given the many variables involved.

The report also emphasized that other developed nations, particularly those in Europe, were also facing economic difficulties. In total, the updated forecasts for 2025 indicate that the global economy will grow by 1.9% less than expected. The study emphasizes the complex interplay between geopolitical tensions, financial pressures, and climate considerations on economic growth prospects.

Go!