Xinhua
24 Apr 2025

IMF slashes global growth outlook on impact of heightened tariffs

In its latest World Economic Outlook (WEO), the IMF downgraded its global growth forecast for 2025 to 2.8 percent, a hefty 0.5 percentage points decrease from its January estimate.

"Since the release of the January WEO Update, a series of new tariff measures by the United States and countermeasures by trading partners have been announced and implemented," the report said, calling the U.S. reciprocal tariffs announced on April 2 "near-universal" and "not seen in a century."

"This on its own is a major negative shock to growth," the IMF said in the executive summary of its April 2025 WEO.

Under the reference forecast that incorporates information as of April 4, global growth is projected to drop to 2.8 percent in 2025 and 3 percent in 2026 -- down from 3.3 percent for both years in January's WEO Update and well below the historical (2000-2019) average of 3.7 percent, according to the latest WEO.

Growth in the United States is expected to slow to 1.8 percent, 0.9 percentage points lower relative to the projection in January's forecast due to "greater policy uncertainty, trade tensions, and softer demand momentum," the report said.

Euro area growth is predicted at 0.8 percent in 2025, 0.2 percentage points lower than the January forecast.

EU fines Apple, Meta amid transatlantic trade strains

The European Union (EU) on Wednesday imposed fines totaling 700 million euros (798.7 million U.S. dollars) on American tech giants Apple and Meta, a move expected to intensify already strained transatlantic trade relations.

Apple received a 500-million-euro fine for preventing app developers from informing users about alternative purchasing options outside its App Store, violating the EU's Digital Markets Act (DMA) anti-steering provisions, according to the Commission.

Apple's rules hindered developers from fully benefiting from external distribution channels and restricted consumers from accessing potentially cheaper offers available outside the App Store, the Commission said in a statement.

Meta, the parent company of Facebook and Instagram, was fined 200 million euros over its "Consent or Pay" model introduced in 2023. Under the system, EU users were required to either consent to the use of their personal data for targeted advertising or pay a monthly subscription fee for an ad-free experience.

Britain draws red lines in U.S. trade talks, excluding compromise on regulatory issues

As transatlantic trade negotiations intensify, British Chancellor of the Exchequer Rachel Reeves has reaffirmed that Britain will not sacrifice its regulatory standards to secure a trade agreement with the United States.

"Britain will not lower its standards or water down regulation in exchange for a trade deal with the U.S.," Reeves said in a televised interview ahead of her meeting with U.S. Treasury Secretary Scott Bessent in Washington. Her remarks represent the firmest public stance yet from the British government as trade talks have drawn renewed attention amid escalating global trade tensions.

WTO chief stresses need to learn from history on U.S. push for import substitution

Director-General of the World Trade Organization (WTO), Ngozi Okonjo-Iweala, said on Wednesday there is a need to learn from history in regard to the U.S. federal government's push for wholesale re-industrialization or import substitution.

Import substitution stories in countries like Brazil and Nigeria didn't go so well and "we need to learn from history," Okonjo-Iweala said at a dialogue organized by the Council on Foreign Relations.

The United States has to look at not just trade but also technology, which substitutes certain manufacturing jobs, according to Okonjo-Iweala, who is also an economist from Nigeria.

"Sometimes, trade is unfairly blamed for things that are due to technology," and there would be more of that substitution from technology, she said.

U.S. stocks advance as Trump eases rhetoric on Powell, tariffs

U.S. stocks extended gains on Wednesday, as U.S. President Donald Trump struck a more conciliatory tone on both Federal Reserve Chair Jerome Powell and tariffs on Chinese goods, soothing investor fears that had weighed on markets in recent sessions.

The Dow Jones Industrial Average rose 419.59 points, or 1.07 percent, to 39,606.57. The S&P 500 added 88.10 points, or 1.67 percent, to 5,375.86. The Nasdaq Composite Index increased by 407.63 points, or 2.50 percent, to 16,708.05.

Trump says Zelensky's statement "very harmful to the peace negotiations with Russia"

U.S. President Donald Trump on Wednesday slammed Ukrainian President Volodymyr Zelensky, saying the Ukrainian leader's statement on Crimea is "very harmful to the Peace Negotiations with Russia."

Trump wrote in a post on Truth Social that "Nobody is asking Zelenskyy to recognize Crimea as Russian Territory but, if he wants Crimea, why didn't they fight for it eleven years ago when it was handed over to Russia without a shot being fired?"

"It's inflammatory statements like Zelenskyy's that makes it so difficult to settle this War. He has nothing to boast about," wrote Trump, adding that "The situation for Ukraine is dire - He can have Peace or, he can fight for another three years before losing the whole Country."

Trump also noted that the statement made by Zelensky would do nothing but prolong the "killing field" and "nobody wants that!"

"We are very close to a Deal, but the man with 'no cards to play' should now, finally, GET IT DONE," he noted.

China's commitment "extremely important" for global climate action: UN chief

UN Secretary-General Antonio Guterres said on Wednesday that China's newly announced commitment to cutting emissions goals is "extremely important" for global climate action.

Guterres made the remarks after the virtual summit, the Leaders Meeting on Climate and the Just Transition, aimed at accelerating global climate ambition ahead of COP30, which will be held in Belem, Brazil, later this year.

The UN chief and Brazilian President Luiz Inacio Lula da Silva gathered 17 leaders of large economies and small islands to discuss stronger commitments for their 2035 emission goals.

When asked about any progress made in the meeting, Guterres said that China has not only announced that it would produce its NDCs, but that those NDCs would cover all economic sectors and all greenhouse gases.

"It's the first time that China clarifies this point, and this is extremely important for climate action," he added.

Injuries in Istanbul earthquake rise to 236 as citywide safety measures rolled out

The number of injuries from Wednesday's 6.2-magnitude earthquake in Istanbul has risen to 236, according to Health Minister Kemal Memisoglu.

The injuries were mostly caused by panic and individuals jumping from heights during the quake, according to the minister. All injured are receiving treatment in hospitals, and no fatalities have been reported.

The earthquake, with its epicenter in the Marmara Sea off Istanbul's coast, prompted widespread safety measures across the city.

The Istanbul Governor's Office announced a two-day suspension of classes in all primary and secondary schools. Administrative leave was also granted to public employees who are disabled, pregnant, or mothers of children under 10.

Palestinian president calls for int'l peace conference

Palestinian President Mahmoud Abbas on Wednesday called for an international peace conference to be held under the auspices of the United Nations (UN), the United States, Russia, China, the European Union, Japan, South Africa and Brazil, aiming to achieve a just, comprehensive and lasting peace in the region.

During a speech in a Palestine Liberation Organization (PLO) Central Council meeting hold in the West Bank city of Ramallah, Abbas stressed that the proposed conference must be based on UN Security Council and General Assembly resolutions, the International Court of Justice, the 2002 Arab Peace Initiative, and the signed agreements between the PLO and Israel.

Abbas also talked about the creation of the position of Vice President of the Executive Committee of the PLO and the State of Palestine, noting that he has referred the matter to the PLO National Council and requested its president to take necessary legal steps to amend the PLO's basic law to establish the position.

Yemen's Houthis take responsibility for pre-dawn attacks on Israel

Yemen's Houthis on Wednesday claimed responsibility for the "missile and drone attacks" on "vital targets" in Israel's cities of Haifa and Tel Aviv, which reportedly triggered sirens across northwestern Israel earlier in the day.

It is the first time the Houthis have targeted Haifa, in far northwestern Israel.

"We launched a hypersonic ballistic missile on Haifa, targeting a vital target," Houthi military spokesperson Yahya Sarea said in a televised statement aired by Houthi-run al-Masirah TV.

52 rescued, 103 bodies found after Mandalay condo collapse

As of Tuesday, 52 people have been rescued, and 103 bodies have been recovered from the collapsed Sky Villa condo in central Myanmar's Mandalay region, the state-run Global New Light of Myanmar reported on Wednesday.

The building collapsed after a powerful earthquake struck on March 28, the report said.