The International Monetary Fund (IMF) has published its updated growth forecast for 2026, featuring several advanced and developing economies. However, it is theThe International Monetary Fund (IMF) has published its updated growth forecast for 2026, featuring several advanced and developing economies. However, it is the

US Growth Forecast Under Scanner Despite a Slight Rise, Crypto Market Reacts Little

2026/01/20 14:38
3 min read
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  • The IMF forecasts US growth rate of 2.4% in 2026.
  • The global crypto market has changed little in the last 24 hours.
  • Trump’s tariffs on European nations might work as a crucial factor.

The International Monetary Fund (IMF) has published its updated growth forecast for 2026, featuring several advanced and developing economies. However, it is the US growth forecast that is under the scanner despite a slight increase in 2026 over 2025. The crypto market remains on edge, possibly sustaining its volatility from earlier this week. Trump’s tariff on European nations may have played a critical role here, at least for the global crypto market.

US Growth Forecast 2026-2027

A report published by the IMF, has stated that the US is projected to grow at 2.4% in 2026. It is higher than 2025, when the estimate was 2.1%. However, bringing the current year’s forecast under the scanner is the growth projection for 2027, which is 2%. That’s a decline not just from 2026 but also from 2025.

To put that forecast into context, Nigeria, which features on the list under ‘Emerging Markets & Developing Economies,’ has a forecasted growth rate of 4.4% and 4.1% for 2026 and 2027, respectively. Saudi Arabia is projected to outperform the US as well, with rates of 4.5% and 3.6%, applicable in the same order.

India is seen leading the race with 6.4% forecasted growth rate for both years, that is, 2026 and 2027.

Reaction of Crypto Market

The global crypto market has remained mostly unchanged in the last 24 hours, even though there have been fluctuations on the price charts. The market cap has declined by 0.29% during this timeline, and the FGI gas tilted more towards the 42 rating point.

Top tokens, like BTC and ETH, are down by 1.09% and 1.08%, respectively. Ted Pillows, a notable crypto analyst, called yesterday’s decline a Bloody Monday factor, citing that the market lost almost $100 billion in just 12 hours. Interestingly, investors were seen diverting their funds to Gold and Silver amid rising uncertainty around international trade.

Are US Tariffs Affecting Growth Forecast?

A 10% tariff on eight European nations announced by US President Donald Trump might affect international trade, at least between the US and the impacted nations. There is a possibility that the US may raise the rate to 25% if a deal is not reached over Greenland. The 10% tariff rate is scheduled to go into effect on February 01, 2026. The increased rate of 25% could go live on June 01, 2026.

The US Supreme Court is yet to deliver a verdict on the legality of Trump’s current tariff. He earlier approved up to 500% tariffs under a bipartisan sanctions bill on countries that are buying Russian energy products, including oil.

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