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Originally published by Capital Business
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business
January 19, 2026
17h ago

IMF warns of trade tension risk to global growth

IMF warns of trade tension risk to global growth

JAN 19 - Trade tensions and a reversal in the artificial intelligence (AI) boom are among the main risks to global economic growth, the International Kenya breaking news | Kenya news today |..

✨ Key Highlights

The International Monetary Fund (IMF) has warned that trade tensions and a potential reversal in the artificial intelligence (AI) boom pose significant risks to global economic growth, despite the global economy being described as "steady" and "resilient" for the current year.

  • The IMF projects global growth to reach 3.3% this year, increasing from its previous forecast of 3.1%.
  • IMF chief economist Pierre Olivier Gourinchas highlighted the global economy's resilience despite past trade disruptions.
  • The IMF emphasized the "paramount" importance of central bank independence for global economic stability, especially following renewed debate sparked by a criminal investigation into US Federal Reserve chair Jerome Powell.

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Part of the Day's Coverage

Global Economy Faces Trade Tension Risks as China's Growth Defies US Tariffs - January 2026

The International Monetary Fund (IMF) has warned that trade tensions pose significant risks to global economic growth. In a related development, gold and silver prices have reached unprecedented highs after US President Donald Trump threatened new tariffs on eight European countries due to a dispute over Greenland. Despite these pressures, China reported that its economy grew by 5% in 2025, meeting its growth target. This was largely due to record exports which defied US tariffs. However, some analysts doubt the accuracy of China's official figures.

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