The International Monetary Fund expects the world economy to grow a little faster and inflation to keep falling this year.

Global growth is expected to increase slightly this year while remaining stuck below its pre-pandemic average, the IMF said Friday, flagging the growing economic divide between the United States and European countries.

The International Monetary Fund has warned that US economic policies under incoming president Donald Trump could hit the rest of the world and ultimately backfire on the US. The IMF says a threatened wave of tariffs could make trade tensions worse,

The IMF has warned that Trump's plans to impose higher blanket tariffs by up to 20%, lower taxes, and restrict immigration could lead to higher inflation and prevent Fed interest rate cuts. The fund substantially raised its forecast for U.