IMF Praises "Resilient" U.S. Economy but Warns of Ballooning Debt and Trump’s Trade Protectionism

In its latest assessment released Wednesday, February 25, 2026, the International Monetary Fund (IMF) projected a robust 2.4% growth for the U.S. GDP and a drop in unemployment to 4.1% this year. IMF Managing Director Kristalina Georgieva credited strong productivity for this performance but issued a stark warning: federal debt is on track to hit 110% of GDP by 2031, posing a systemic risk to financial stability.

The report specifically took aim at President Donald Trump’s trade policies, stating that high tariffs and export controls "could impose a heavier drag on economic activity than expected." The IMF urged Washington to work constructively with global partners to mutually ease trade restrictions, emphasizing that national security-related trade measures should remain narrow in scope to avoid stifling global growth.