Economic news

Spanish PM says ‘industrial and technological plan’ will ensure country commits to spending 2% of GDP on defence

Spain has announced a €10.5bn investment plan to ensure it will reach its long-delayed Nato commitment of spending 2% of its GDP on defence this year, saying it has become obvious “only Europe will know how to protect Europe” from now on.

The country – which lags well behind other western nations by dedicating about 1.3% of its GDP to defence spending – is one of the Nato members that has been pressured by the Trump administration to increase its spending, and had previously committed to hitting the 2% threshold by 2029.

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Lender cuts forecasts for every major economy, with UK expected to grow by 1.1% this year, down from 1.6%

• Business live – latest updates

Donald Trump’s tariffs have unleashed a “major negative shock” into the world economy, the International Monetary Fund has said, as it cut its forecasts for US, UK and global growth.

In a stark assessment of the impact of the US president’s policies, as global finance ministers prepare to meet in Washington, the IMF said: “We expect that the sharp increase on 2 April in both tariffs and uncertainty will lead to a significant slowdown in global growth in the near term.”

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Rolling coverage of the latest economic and financial news, as dollar weakens and gold soars after latest Trump salvo at Jerome Powell

• Reeves to make case for free global trade at Washington IMF talks

With a week to go, April is turning into the worst month for the US stock market since the Great Depression.

The Wall Street Journal is reporting that the Dow Jones Industrial Average is headed for its worst April performance since 1932, according to Dow Jones Market Data.

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