The International Monetary Fund said its global growth forecast was revised “markedly down” since January due to “effective tariff rates not seen in a century.” The group expects global growth of 2.8 per cent this year and three per cent next year, down from its January forecast of 3.3 per cent growth during both years. (The Logic)

Talking point: That forecast is “much below” the average growth of 3.7 per cent between 2000 and 2019. The IMF, which lends money to member countries and promotes trade, economic cooperation and financial stability, said the U.S. will see its real GDP grow just 1.8 per cent this year amid ripple effects from its April 2 tariff announcement, while Canada’s is expected to grow 1.4 per cent. The tariffs are a “a major negative shock to growth,” the group said, worsened by the uncertainty of the policy rollout. “We are entering a new era as the global economic system that has operated for the last 80 years is being reset,” said IMF chief economist Pierre-Olivier Gourinchas in a press conference.