Confidence in the global economy plummets due to US tariff war

By: Trademagazin Date: 2025. 04. 22. 14:39

The economic confidence indices of the world’s leading economies have deteriorated significantly due to trade tensions caused by US tariff measures, according to the Tiger Index compiled jointly by the Brookings Institution and the Financial Times. According to the latest data, the confidence index of the US economy has fallen to minus 2, which is the lowest value in the history of the measurement series and is even lower than the level measured during the 2020 pandemic.

According to Eswar Prasad, chief economist at Brookings, the fragmentation of global trade and increasing policy uncertainties are seriously restraining growth, especially in open, export-oriented economies.

The pessimistic mood is also confirmed by other analysts: the international credit rating agency Fitch Ratings has reduced its growth forecasts for the US and Chinese economies this year and expects a lower growth rate of 1.9% for the global economy as a whole in 2025. The escalating tariff war poses a serious risk to the real economic recovery.