(MENAFN) The International Monetary Fund (IMF) on Tuesday upgraded its forecast for worldwide economic expansion in 2025 to 3.2%, up from the previous 3%, while maintaining its projection steady at 3.1% for 2026.

According to an IMF report, despite the improved forecast compared to the earlier assessment, global growth is still anticipated to decelerate from 3.3% in 2024 to 3.2% in 2025 and then 3.1% in 2026.

This slowdown is attributed to "policy shifts and complex forces" impacting the global economy.

The report highlighted, "In April, the United States shook global trade norms by announcing sweeping tariffs. Given the complexity and fluidity of the moment, our April report offered a range of estimates for the growth downgrade, from modest to significant, depending on the ultimate severity of the trade shock."

The fund emphasized that uncertainty around trade policy remains elevated due to the absence of transparent, definitive, and enduring agreements between trading nations.

Attention is now moving away from the precise tariff levels toward the broader consequences on prices, investment, and consumer spending.

While acknowledging that the effects of increased protectionist trade policies on economic performance and pricing have so far been limited, the report noted that growth showed resilience during the first half of the year.

However, the document also pointed out growing indications that the adverse effects of protectionist measures are starting to take hold.

It warned that trade policy uncertainty is likely to persist at high levels throughout 2025 and 2026.

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