The International Monetary Fund predicts the global economy will slow sharply this year, hurt by US president Donald Trump's tariffs. But wall street has rebounded strongly as hopes increase the United States will broker trade deals with major partners.
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00:00So the IMF released a round of forecasts back in early January when we knew that Trump was
00:06president, but we didn't know what sort of policies he'd pursue. Now, three months later,
00:11they're issuing a new set of forecasts. And so basically, you can take the change in those
00:15forecasts as essentially being a vote from a very smart, very technocratic organization,
00:22or a best guess as to what the Trump madness has done to the world's economic outlook.
00:27You can think of it as scoring the winners and losers. Well, here's the losers. The biggest
00:32loser is Mexico, followed by the United States. These are overwhelmingly the countries that stand
00:37to lose the most over the next couple of years as a result of all the madness that's come out of the
00:42last three months. For Australia, Australia is pretty much exactly where the rest of the world
00:47is. Growth in the rest of the world is likely to be a little bit slower. And Australia is right on
00:52that average there. The, of course, now, you know, four weeks ago, we're at war with Canada
00:59and Mexico. Three weeks ago, it was with the whole world. And as of a week and a half ago,
01:05it's just China. Well, the Trump tariff war is going to cost the American economy more than
01:09it costs the Chinese economy.