The current international economic setting is marked by significant policy uncertainty, amid the threat of tariff wars significantly impacting global trade and leading to a resurgence of inflation. According to the International Monetary Fund’s January 2025 World Economic Outlook Update, world growth for this year is projected to remain relatively steady at 3.3 per cent, but with large downside risks. The IMF’s forecast of global inflation at 4.2 per cent in 2025, compared with 5.7 per cent in 2024, also appears optimistic given present trade tensions.