In its world economic outlook, the IMF lifted its U.S. growth estimate for 2025 to 1.9% and the 2026 forecast to 2%. That’s an increase of one-tenth of a percent this year and three-tenths of a percent next year. Tax incentives for corporate investment in the recent tax bill will also push growth slightly higher next year, the IMF said.

The IMF on Tuesday raised its global growth forecasts for 2025 and 2026 slightly, citing stronger-than-expected purchases ahead of an August 1 jump in U.S. tariffs and a drop in the effective U.S. tariff rate to 17.

For emerging market and developing economies, the IMF raised its forecast to 4.1 percent from 3.7 percent for 2025 and to 4 percent from 3.9 percent for 2026. However, risks to the global outlook remain tilted to the downside, with potential tariff rebounds and elevated uncertainty threatening to weigh on economic activity.