Washington, April 23 (dpa/GNA) — The International Monetary Fund (IMF) cautioned on Wednesday that broad-ranging tariffs introduced by U.S. President Donald Trump, along with counteractions from various countries, are exacerbating the deteriorating worldwide economic financial situation.

Based on the IMF’s most recent Fiscal Monitor report, the newly imposed tariffs are causing disruptions in both supply chains and consumer behavior, intensifying economic unpredictability, escalating borrowing expenses, amplifying fluctuations in financial markets, and diminishing worldwide growth projections.

Consequently, the worldwide public debt is anticipated to increase by 2.8 percentage points of gross domestic product (GDP) this year, causing the overall debt-to-GDP ratio to surpass 95%.

The IMF stated that this increasing pattern is expected to persist, with public debt projected to reach almost 100% of GDP by the end of the decade.

The report highlighted significant contributions to rising global debt from major economic powers such as the United States, China, France, the UK, Brazil, and South Africa.

Although increased tariffs might increase government income initially, the IMF stated that this impact is expected to be temporary. With rising costs, both the demand for imports and local manufacturing usually decrease, negating potential revenue increases and additionally weakening overall economic activity.

Fiscal policy currently confronts a more pronounced choice when it comes to decreasing debt levels, establishing reserves for unforeseen events, and supporting increased expenditures.

“amidst lower growth forecasts, increased funding expenses, and elevated risks,” the IMF noted.

The fund on Tuesday lowered its global economic growth forecast for 2025 to 2.8%.

GNA

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