The International Monetary Fund is upgrading the economic outlook for the world this year because President Donald Trump’s protectionist trade policies have so far proven less damaging than expected

The U.S.-based International Monetary Fund says global economic growth will be better than expected despite a slowdown in the U.S. economy over fluctuating tariffs imposed by President Donald Trump.

In its world economic outlook, the IMF lifted its U.S. growth estimate for 2025 to 1.9% and the 2026 forecast to 2%. That’s an increase of one-tenth of a percent this year and three-tenths of a percent next year. Tax incentives for corporate investment in the recent tax bill will also push growth slightly higher next year, the IMF said.