During his visit to Washington for the fall meetings of the G7 and G20 finance ministers and the annual gathering of the International Monetary Fund and World Bank Group, Finance Minister François-Philippe Champagne highlighted the findings of a recent International Monetary Fund report. The report indicated that while the global economy is displaying resilience in the face of U.S. tariffs, trade uncertainty continues to impede its progress.
Speaking at the IMF headquarters in Washington, Champagne emphasized the importance of stability and predictability in the world economy, with a specific mention of Canada’s role in addressing these needs.
The IMF report cautioned about the ongoing challenges in the global economy and stressed the necessity for collaborative efforts within the G7 to reduce uncertainty levels and foster economic stability.
New tariffs initiated by U.S. President Donald Trump are now in effect, including a 10% global levy on softwood lumber and timber imports. These tariffs aim to safeguard domestic manufacturing, although concerns have been raised about potential increases in housing costs for U.S. consumers.
The IMF’s latest update on global growth indicated a modest pace yet better than previously anticipated. Despite this, the report highlighted the persistent risks posed by substantial U.S. tariffs and the overall volatile economic conditions.
Projections suggest a gradual slowdown in global growth from 3.3% in 2024 to 3.2% in 2025 and 3.1% in 2026, with risks leaning towards the downside due to prolonged uncertainty, potential protectionism, and other economic shocks.
Canada, significantly impacted by various U.S. tariffs, is expected to experience a growth slowdown to 1.2% this year, as per the IMF’s forecast.
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