GB News was halted for a major breaking news update. Emily Carver announced a significant update regarding the economy, as the International Monetary Fund (IMF) has downgraded its growth forecast for the UK’s gross domestic product (GDP) following. Donald Trump‘s tariff changes. This adjustment comes amidst ongoing market instability and presents a challenge for the Prime Minister Keir Starmer and Chancellor Rachel Reeves have emphasised economic growth as a key objective for the Labour Government. According to the latest forecasts, GDP growth is projected to rise by 1.1 per cent in 2025, a decrease from previous estimates of 1.6 per cent. This revision is attributed to concerns stemming from the President. Donald Trump’s tariff threats.

The outlook for nearly all countries has been downgraded, reflecting the direct effect of new trade measures and the knock-on impact of uncertainty amongst consumers and businesses.

Chancellor of the Exchequer Rachel Reeves said the new forecasts show “the UK is still the fastest-growing” European country in the G7.

“The IMF have recognised that this Government is delivering reform which will drive up long-term growth in the UK, through our Plan for Change,” she said.

“The report also clearly shows that the world has changed, which is why I will be in Washington this week defending British interests and making the case for free and fair trade.”

The latest World Economic Outlook report was produced under “exceptional circumstances”, with the IMF being forced to change its projections after the US President Donald Trump unveiled a range of new and higher tariffs earlier this month.

The IMF’s top economist, Pierre-Olivier Gourinchas, said: “While many of the scheduled tariff increases are on hold for now, the combination of measures and countermeasures has hiked US and global tariff rates to centennial highs.

“For this reason, we expect the sharp increase on April 2 in both tariffs and uncertainty will lead to a significant slowdown in global growth in the near term.”