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.

The International Monetary Fund (IMF) has predicted stronger global economic growth than it forecast in April in part due to some US tariffs on goods being softened. It predicted growth of 3% in 2025 and 3.1% in 2026, up from 2.8% and 3% in its previous report.