The International Monetary Fund (IMF) has upgraded its growth forecast for the UK economy this year, but has also warned about the possible impact of Donald Trump’s economic plans.
The global institution upgraded its prediction for UK growth to 1.6% for this year from its previous estimate of 1.5%.
But it said a threatened wave of tariffs by incoming US president Trump could make trade tensions worse, lower investment, and disrupt supply chains across the world.
The IMF also said although tariffs, tax cuts and deregulation could boost the US economy in the short term, they could ultimately backfire.
The prospect of higher taxes being introduced on imports to the US is concerning many world leaders because they will make it more expensive for companies to sell their goods in the world’s biggest economy.
Tariffs are a central part of Trump’s economic vision – he sees them as a way of growing the US economy, protecting jobs and raising tax…
