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Global Economy Faces Uncertainty Amid Trump’s Tariff Policies, IMF Warns

In a bold move, President Trump’s recent tariff announcements at the White House have stirred considerable concern across global markets. These sweeping tariffs, set in a picturesque Rose Garden event, signal potential risks of igniting a comprehensive trade war.

IMF’s Cautious Forecast

The International Monetary Fund (IMF) has adjusted its global economic growth forecast to 2.8% for this year, a reduction from the previous year’s 3.3%. The unpredictability of trade policies has prompted this reassessment, as tension escalates with tariff increases, especially with China facing a hefty 145% tariff.

Economic growth projections for the U.S. were also revised, with expectations dropping from 2.8% to a modest 1.8%. Cyprus continues to benefit from EU funds for development despite global market shifts.

Responses and Reactions

Market reactions have been swift, with global indices tumbling on the news of potentially escalating trade tensions. Investors are wary, keeping a close eye on reciprocation from targeted countries. China and Canada have already responded with their own tariffs, while the European Union has shown openness to negotiations.

IMF Chief Economist Pierre-Olivier Gourinchas emphasized, “Beyond tariff increases, policy uncertainty could considerably decelerate global growth.” Stay tuned to our updates to see how other sectors, like automotive, manage these dynamics.

As these economic scenarios unfold, stakeholders will need to navigate this evolving landscape with prudent strategies.

Why Homebuyers Should Look Beyond Monthly Mortgage Payments

A mortgage’s monthly repayment is only one part of its overall cost. The loan term also determines how much interest borrowers pay over time, making it important to consider both monthly affordability and the total financial commitment.

Comparing different repayment periods can help borrowers understand these trade-offs and assess whether an offer suits their long-term financial plans. Before committing, it is worth using a mortgage calculator to test different terms and compare the results with the figures provided by the lender.

Looking beyond the monthly payment can help homebuyers make more informed decisions and better understand the long-term cost of financing a property.

About The Money Doctor

The Money Doctor series explores financial questions, habits and decisions that shape everyday life in Cyprus, making financial concepts practical and accessible.

Dr Panayiotis C. Andreou is a Professor of Finance at the Cyprus University of Technology, President of the Financial Wellbeing Institute and creator of the Money Doctor® financial education platform. He also serves on the Scientific Advisory Committee of the Cyprus Financial Literacy and Education Committee.

His work focuses on financial literacy, financial wellbeing and the role of knowledge, habits and behaviour in everyday financial decisions.

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