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US to grow at double the rate of G7 peers this year, says IMF

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US to grow at double the rate of G7 peers this year, says IMF

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The US is on track to grow at double the rate of any other G7 country this year, according to IMF forecasts, as the strength of the world’s biggest economy rocks global markets.

Strong household spending and investment will help propel US growth to 2.7 per cent this year according to the fund’s latest World Economic Outlook.

The figure is higher than the 2.5 per cent estimated for 2023 and represents a 0.6 percentage point upgrade on the previous forecast.

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The projections highlight the US economy’s role as the driver of global growth, as investors across the world scale back their expectations for Federal Reserve interest rate cuts.

The IMF said the next best performer in the G7 this year would be Canada, with growth of 1.2 per cent.

It added that Germany’s expansion would be the weakest among the G7 at 0.2 per cent. Japan is forecast to experience growth of 0.9 per cent, while the UK is set to expand by just 0.5 per cent after flatlining in 2023.

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Global stock markets sank and Asian currencies were hit by a rising dollar on Tuesday, following a Wall Street sell-off prompted by strong US retail sales figures suggesting the Fed may cut rates this year by less than previously thought.

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Pierre-Olivier Gourinchas, IMF chief economist, told the Financial Times that, while the “baseline” was still three quarter-point cuts this year, the Fed could be thrown off course by the surging US economy.

“If the inflation pressures persist beyond what we have right now, in the US in particular, then we would expect that they would have later cuts and maybe fewer cuts,” he said.

Gourinchas added that Fed rate cuts could be delayed from this summer to the fourth quarter — potentially after November’s presidential election — if inflation overshot IMF expectations.

At present, investors expect the Fed to cut rates by September and possibly more than once by the end of the year.

The recent bumper US growth has helped the global economy avoid a long-feared hard landing following interest rate rises.

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But strong demand has also pushed up price pressures, in contrast with the UK and eurozone.

The IMF said US inflation would continue to recede but lifted its forecast for this year to 2.9 per cent, above the 2.4 per cent predicted for the eurozone and 2.5 per cent in the UK.

Gourinchas said the European Central Bank and the Bank of England could cut rates sooner because they did not face such a “strong demand-driven component of inflation”. 

Laying out its projections as central bank governors and finance ministers attend joint IMF/World Bank spring meetings in Washington, the fund found that global economic activity had proven “surprisingly resilient” even after central banks boosted rates to bear down on inflation.

But it also warned of risks to the global recovery, notably the possibility of fresh increases in commodity prices resulting from the conflict in the Middle East. 

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The broader picture is still one of tepid expansion by historical standards, with world growth projected to remain at 3.2 per cent this year and next, in line with 2023’s estimate. 

The IMF said the long-term consequences of the coronavirus pandemic, Russia’s full-scale invasion of Ukraine, weak productivity growth and increasing “geoeconomic fragmentation” were hampering expansion.  

The cause of disinflation in advanced economies was being aided by a stronger than forecast rise in employment, in part because of inflows of migrants, the IMF said. There had been faster growth in foreign-born rather than domestic workforces since 2021 in economies including Canada, the eurozone, the UK and the US, it found.

Among other leading economies, the IMF predicted China’s growth would slow this year to 4.6 per cent from 5.2 per cent in 2023, while forecasts for India, one of the world’s fastest-growing economies, have been upgraded to 6.8 per cent for this year.

Russia received one of the biggest upgrades, with growth now projected to be 3.2 per cent this year, 0.6 percentage points higher than previously expected, followed by growth of 1.8 per cent in 2025. The IMF’s doubling of its forecast for Russian growth in its January outlook fed concerns among G7 countries that sanctions were failing to damage Vladimir Putin’s war economy. 

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Gourinchas said Russian expansion was being partly driven by strong oil export revenues, coupled with firm private investment.

“Domestic demand is very strong,” he said. “The sanctions are still degrading and having an impact gradually on the Russian economy, but the economy itself is quite resilient.”

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Mojtaba Khamenei, son of former supreme leader, tipped to become Iran’s next head of state

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Mojtaba Khamenei, son of former supreme leader, tipped to become Iran’s next head of state

Mojtaba Khamenei, the second son of the assassinated Ali Khamenei, is being heavily tipped to succeed his father as supreme leader of Iran, which would pitch a hardliner into the task of steering the Islamic republic through the most turbulent period in its 48-year history and offer a powerful signal that, for now, it has no intention of changing course.

No official confirmation has been given and the announcement may be delayed until after the funeral of Ali Khamenei, which was on Wednesday postponed.

His son is believed to have been the choice of the Islamic Revolutionary Guard Corps (IRGC), and the Israeli defence minister, Gideon Saar, has warned he will be assassinated.

Ayatollah Seyed Khatani, a member of the Assembly of Experts, the body that chooses the new supreme leader, said the assembly was close to selecting a leader.

Rigid in his anti-western views, Mojtaba Khamenei is not the candidate Donald Trump would have wanted. Marco Rubio, the US secretary of state, said on Tuesday that Iran was run by “religious fanatic lunatics” – and Khamenei’s appointment is hardly likely to dispel that opinion.

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The choice of supreme leader is made by the 88-strong Assembly of Experts, who in this case are picking from a field of six possible candidates. His election would be a powerful if unsurprising symbol that the government is not looking to find an accommodation with America.

Trump has said the worst-case scenario would be if Khamenei’s successor was “as bad as the previous person”.

There has been speculation for more than a decade that he would be his father’s successor, which grew when Ebrahim Raisi, the elected president and favourite of Khamenei, was killed in a helicopter crash.

Mojtaba Khamenei was born in 1969 and studied theology after graduating from high school. At the age of 17, he went to serve in the Iran-Iraq war, but it was not until the late 1990s that he came to be recognised as a public figure in his own right.

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After the landslide defeat of Khamenei’s preferred candidate, Ali Akbar Nategh Nuri, in the 1997 presidential election, where he won only 25% of the final vote, various conservative Iranian groups realised the need to make changes to their structures and Mojtaba Khamenei was central to that project.

He was also seen as instrumental by reformists in suppressing the protests in 2009 that came after allegations the presidential election had been rigged, with his name chanted in the streets as one of those responsible. Mostafa Tajzadeh, a senior member of Iran’s reformist parties who was imprisoned after the vote, alleged that his and his wife, Fakhr al-Sadat Mohtashamipour’s, legal case was under the direct supervision of Mojtaba Khamenei.

In 2022 he was given the title of ayatollah – essential to his promotion. By then he was a regular figure by his father’s side at political meetings, as well as playing an influential role in the Islamic Republic’s Broadcasting Corporation, the government’s official media outlet often criticised for churning out dull political propaganda that many Iranians reject in favour of overseas satellite channels. He has also played a central role in the administration of his father’s substantial financial empire.

His closest political allies are Ahmad Vahidi, the newly appointed IRGC commander; Hossein Taeb, a former head of the IRGC’s intelligence organisation; and Mohammad Bagher Ghalibaf, the current speaker of the parliament.

His rumoured appointment and its hereditary nature has long been resisted by reformists. The former prime minister Mir Hossein Mousavi, referring to the long history of rumours about Mojtaba Khamenei succeeding his father as leader, wrote in 2022: “News of this conspiracy have been heard for 13 years. If they are not truly pursuing it, why don’t they deny such an intention once and for all?”

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The Assembly of Experts, in response, denounced “meaninglessness of doubts” and said the assembly would select only “the most qualified and the most suitable”.

Israel on Tuesday struck the building in the Iranian city of Qom, one of Shia Islam’s main seats of power, where the assembly was scheduled, but the building was empty, according to IRGC-affiliated media.

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Video: Senators Question Kristi Noem on ICE Immigration Tactics

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Video: Senators Question Kristi Noem on ICE Immigration Tactics

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Senators Question Kristi Noem on ICE Immigration Tactics

Homeland Security Secretary Kristi Noem repeatedly refused to apologize for suggesting that Alex Pretti and Renee Good, two U.S. citizens shot and killed by agents, were domestic terrorists.

What we’ve seen is a disaster under your leadership, Ms. Noem. A disaster. What we’ve seen is innocent people getting detained that turn out are American citizens. I could talk about the culture that’s been created here. After the killings of Renee Good and Alex Pretti, when I spoke to Alex’s parents, they told me that you calling him a domestic terrorist — this was directly from them — the day after he was killed, a nurse in our V.A., Alex — one of the most hurtful things they could ever imagine was said by you about their son. Do you have anything you want to say to Alex Pretti’s parents? Ma’am, I did not call him a domestic terrorist. I said It appeared to be an incident of — I think the parents saw it for what it was. In a hearing — recent hearing before the HSGAC committee, C.B.P. and ICE officials testified under oath that their agencies did not inform you that Pretti was a domestic terrorist — during that hearing, stated during that hearing, I was getting reports from the ground, from agents at the scene, and I would say that it was a chaotic scene. How did you think that calling them domestic terrorists at that scene was somehow going to calm the situation? The fact that you can’t admit to a mistake, which looks like under investigation, it’s going to prove that Ms. Good and Mr. Pretti probably should not have been shot in the face and in the back. Law enforcement needs to learn from that. You don’t protect them by not looking after the facts.

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Homeland Security Secretary Kristi Noem repeatedly refused to apologize for suggesting that Alex Pretti and Renee Good, two U.S. citizens shot and killed by agents, were domestic terrorists.

By Christina Kelso and Jackeline Luna

March 3, 2026

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Pregnant migrant girls are being sent to a Texas shelter flagged as medically risky

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Pregnant migrant girls are being sent to a Texas shelter flagged as medically risky

The Trump administration is sending pregnant unaccompanied minors to a South Texas shelter (above) flagged as medically inadequate by officials from the Office of Refugee Resettlement. The facility is run by a for-profit contractor called Urban Strategies.

Patricia Lim/KUT News


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Patricia Lim/KUT News

The Trump administration is sending all pregnant unaccompanied minors apprehended by immigration enforcement to a single group shelter in South Texas. The decision was made over urgent objections from some of the administration’s own health and child welfare officials, who say both the facility and the region lack the specialized care the girls need.

That’s according to seven officials who work at the Office of Refugee Resettlement within the U.S. Department of Health and Human Services, which takes custody of children who cross the border without a parent or legal guardian, or are separated from family by immigration authorities. The children remain in ORR’s care until they can be released to an adult or deported, or turn 18.

All of the officials asked not to be named for fear of retaliation.

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Since late July, more than a dozen pregnant minors have been placed at the Texas facility, which is in the small border city of San Benito. Some were as young as 13, and at least half of those taken in so far became pregnant as a result of rape, the officials said. Their pregnancies are considered high risk by definition, particularly for the youngest girls.

“This group of kids is clearly recognized as our most vulnerable,” one of the officials said. Rank-and-file staff, the official said, are “losing sleep over it, wondering if kids are going to be placed in programs where they’re not going to have access to the care they need.”

The move marks a sharp departure from longstanding federal practice, which placed pregnant, unaccompanied migrant children in ORR shelters or foster homes around the country that are equipped to handle high-risk pregnancies.

The ORR officials said they were never told why the girls are being concentrated in a single location, let alone in this particular shelter in Texas. But they — along with more than a dozen former government officials, health care professionals, migrant advocates and civil rights attorneys — worry the Trump administration is knowingly putting the children at risk to advance an ideological goal: denying them access to abortion by placing them in a state where it’s virtually banned.

“This is 100% and exclusively about abortion,” said Jonathan White, a longtime federal health official who ran ORR’s unaccompanied children program for part of President Trump’s first term. White, who recently retired from the government, said the administration tried and failed to restrict abortion access for unaccompanied minors in 2017. “Now they casually roll out what they brutally fought to accomplish last time and didn’t.”

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Asked if the administration is sending pregnant children to San Benito to restrict their access to abortion, HHS said in a statement that the allegation was “completely inaccurate.”

In an earlier statement, the department said that “ORR’s placement decisions are guided by child welfare best practices and are designed to ensure each child is housed in the safest, most developmentally appropriate setting, including for children who are pregnant or parenting.”

But several of the ORR officials took issue with the department’s statement. “ORR is supposed to be a child welfare organization,” one of them said. “Putting pregnant kids in San Benito is not a decision you make when you care about children’s safety.”

ORR’s acting director, Angie Salazar, instructed agency staff to send “any pregnant children” to San Benito beginning July 22, 2025, according to an internal email obtained as part of a six-month investigation by The California Newsroom and The Texas Newsroom, public media collaboratives that worked together to produce this story.

A copy of the July 22, 2025, email notifying ORR supervisors of the directive to send pregnant unaccompanied minors to a single shelter in San Benito, Texas. The move comes over objections from the government’s own health and child welfare officials.

A copy of the July 22, 2025, email notifying ORR supervisors of the directive to send pregnant unaccompanied minors to a single shelter in San Benito, Texas. The move comes over objections from the government’s own health and child welfare officials.
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Several of the officials said a handful of pregnant girls have mistakenly been placed in other shelters because immigration authorities didn’t know they were pregnant when they were transferred to ORR custody.

Since the July order, none of the pregnant girls at the San Benito facility have experienced major medical problems, according to the ORR officials and Aimee Korolev, deputy director of ProBAR, an organization that provides legal services to children there. They said several of the girls have given birth and are detained with their infants.

But ORR officials interviewed for this story said they worry the shelter is only one high-risk pregnancy away from catastrophe.

“I feel like we’re just waiting for something terrible to happen,” one of the officials said.

‘Blown away by the level of risk’

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There are dozens of ORR shelters or foster homes across the country that are designated to care for pregnant unaccompanied children, according to several of the ORR officials, with 12 in Texas alone. None of them could recall a time when all of the pregnant minors in the agency’s custody were concentrated in one shelter.

Detaining them in San Benito, Texas, doctors and public health experts said, is a dangerous gambit.

“It’s not good to be a pregnant person in Texas, no matter who you are,” said Annie Leone, a nurse midwife who recently spent five years caring for pregnant and postpartum migrant women and girls at a large family shelter not far from San Benito. “So, to put pregnant migrant kids in Texas, and then in one of the worst health care regions of Texas, is not good at all.”

The specialized obstetric care that exists in Texas is mostly available in its larger cities, hours from San Benito. And several factors, including the high number of uninsured patients, have eroded the availability of health care across the state.

Furthermore, Texas’ near-ban on abortion has been especially devastating to obstetric care. The law allows an exception in cases where the pregnant person’s life is in danger or one of her bodily functions is at risk, but doctors have been confused as to what that means.

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Many doctors have left to practice elsewhere, and those who’ve stayed are often scared to perform procedures they worry could come with criminal charges. While Texas passed a law clarifying the exceptions last year, experts have said it may not be enough to assuage doctors’ fears.

Several maternal health experts listed the potential dangers for the girls at the San Benito shelter: If one of them develops an ectopic pregnancy (where the fertilized egg implants outside the uterus), if she miscarries or if her water breaks too early and she gets an infection, the emergency care she needs could be delayed or denied by doctors wary of the abortion ban.

Getting the care that is available could take too long to save her life or the baby’s, they added.

Adolescents are also more likely to give birth early, which can be life-threatening for both mother and baby. The youngest face complications during labor and delivery because their pelvises aren’t fully developed, said Dr. Anne-Marie Amies Oelschlager, an obstetrician in Washington state who specializes in adolescent pregnancy.

“These are young adolescents who are still going through puberty,” she said. “Their bodies are still changing.”

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Pregnant girls who recently endured the often harrowing journey to the U.S. face even more risk, obstetrics experts said. Experts who work with migrant children say many are raped along the way and contract sexually transmitted infections that can be dangerous during pregnancy. Add to that little to no access to prenatal care or proper nourishment, and then the trauma of being detained.

“You couldn’t set up a worse scenario,” said Dr. Blair Cushing, who runs a women’s health clinic in McAllen, about 45 minutes from San Benito. “I’m kind of blown away by the level of risk that they’re concentrating in this facility.”

A history of problems

The San Benito shelter is owned and operated by Urban Strategies, a for-profit company that has contracted with the federal government to care for unaccompanied children for more than a decade, according to USAspending.gov.

Meliza Fonseca lives across the street from the San Benito shelter. She said she occasionally sees kids in the yard on weekends, “but for the most part, you don’t see them.”

Meliza Fonseca lives across the street from the San Benito shelter. She said she occasionally sees kids in the yard on weekends, “but for the most part, you don’t see them.”

Patricia Lim/KUT

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The main building, an old tan brick Baptist Church, occupies a city block in downtown San Benito, a quiet town of about 25,000. The church was converted to a migrant shelter in 2015 and was managed by two other contractors before Urban Strategies took it over in 2021.

On a fall day last year, there were no signs of activity at the facility, though children’s lawn toys and playground equipment were visible behind a wooden fence. A guard was stationed at one of the entrances.

“It’s pretty quiet, just like it is today,” said Meliza Fonseca, who lives nearby. “That’s the way it is every day.”

She said she occasionally sees kids playing in the yard on weekends, “but for the most part, you don’t see them.”

Reached by email, the founder and president of Urban Strategies, Lisa Cummins, wrote that the company is “deeply committed to the care and well-being of the children we serve,” and directed any questions about ORR-contracted shelters to the federal government.

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When asked about the San Benito facility, HHS wrote that “Urban Strategies has a long-standing record of delivering high-quality care to pregnant unaccompanied minors, with a consistently low staff turnover.”

But the ORR officials who spoke with the newsrooms said that as recently as 2024, staff members at the shelter failed to arrange timely medical appointments for pregnant girls or immediately share critical health information with the federal agency and discharged some of them without arrangements to continue their medical care.

ORR barred the shelter from receiving pregnant girls from September to December of 2024 while Urban Strategies implemented a remediation plan, but the plan did not add staff or enhance their qualifications, the officials said.

Some of the officials said ORR’s leadership was provided with a list of shelters that are better prepared to handle children with high-risk pregnancies. All of those shelters are outside Texas, in regions where the full range of necessary medical care is available. Yet the directive to place them at San Benito remains in place.

“It’s cruel, it’s just cruel,” one of the officials said. “They don’t care about any of these kids. They’re playing politics with children’s health.”

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‘A dress rehearsal’

Jonathan White, who ran ORR’s unaccompanied children program from January of 2017 to March of 2018, said he wasn’t surprised to learn that the new administration is moving pregnant unaccompanied children to Texas.

“I’ve been expecting this since Trump returned to office,” White said in an interview.

He said he views the San Benito order as a continuation of an anti-abortion policy shift that began in 2017, which “ultimately proved to be a dress rehearsal for the current administration.”

Scott Lloyd, the agency’s director at the time, denied girls in ORR custody permission to end their pregnancies, court records show. Lloyd also required the girls to get counseling about the benefits of motherhood and the harms of abortion and personally pleaded with some of them to reconsider.

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“I worked to treat all of the children in ORR care with dignity, including the unborn children,” Lloyd told the newsrooms in an email.

In the fall of 2017, the American Civil Liberties Union filed a class action lawsuit against Lloyd and the Trump administration on behalf of pregnant girls in ORR custody. The ACLU argued that denying the girls abortions violated their constitutional rights, established by the Supreme Court in its 1973 Roe v. Wade decision.

Not long after the lawsuit was filed, White said, he received a late-night phone call from Lloyd, who had a request. He wanted White to transfer an unaccompanied pregnant girl who was seeking an abortion to a migrant shelter in Texas, where, under state law, it would have been too late for her to terminate her pregnancy. White said that he believed following the order would have been unlawful because it might have denied the girl access to legal relief under the lawsuit, so he refused. The girl was not transferred.

Lloyd, who has since left the government, acknowledged making the request but said he didn’t think it was illegal.

The lawsuit was settled in 2020; the first Trump administration agreed not to impede abortion access for migrant youth in federal custody going forward. Four years later, the Biden administration cemented the deal in official regulations: If a child who wanted to terminate her pregnancy was detained in a state where it was not legal, ORR had to move them to a state where it was.

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That rule remains in place, and the agency appears to be following it: ORR has transferred two pregnant girls out of Texas since July, though the agency officials said one of the girls chose not to terminate her pregnancy.

But now that Trump is back in office, his administration is working to end the policy.

‘Elegant and simple’

Even before Trump won reelection, policymakers in his circle were planning a renewed attempt to restrict abortion rights for unaccompanied minors.

Project 2025, the Heritage Foundation’s blueprint for a politically conservative overhaul of the federal government, called for ORR to stop facilitating abortions for children in its care. The plan advised the government not to detain unaccompanied children in states where abortion is available.

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Such a change is now possible, Project 2025 argued, because Roe v. Wade is no longer an obstacle. Since the Supreme Court overturned the landmark decision in 2022, there is no longer a federal right to abortion.

Upon returning to office, Trump signed an executive order “to end the forced use of Federal taxpayer dollars to fund or promote elective abortion.”

Then, in early July, the Department of Justice reconsidered a longstanding federal law, known as the Hyde Amendment, that governs the use of taxpayer money for abortion. The DOJ concluded that the government cannot pay to transport detainees from one state to another to facilitate abortion access, except in cases of rape or incest or to save the life of the mother.

And now, ORR is working to rescind the Biden-era requirement that pregnant girls requesting an abortion be moved to states where it’s available. On Jan. 23, the agency submitted the proposed change for government approval, though it has not yet published the details.

Several of the ORR officials who spoke with the newsrooms said it’s unclear whether children in the agency’s custody who have been raped or need emergency medical care will still be allowed to get abortions.

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“HHS does not comment on pending or pre-decisional rulemaking,” the department wrote when asked for details of the regulatory change. “ORR will continue to comply with all applicable federal laws, including requirements for providing necessary medical care to children in ORR custody.”

The day the change was submitted, an unnamed Health and Human Services spokesperson told The Daily Signal, a conservative news site, “Our goal is to save lives both for these young children that are coming across the border, that are pregnant, and to save the lives of their unborn babies.”

Experts who spoke with the newsrooms said it’s unclear why the government would concentrate pregnant children in one Texas shelter, rather than disperse them at shelters throughout the state. But they said they’re convinced that the San Benito directive and the anti-abortion rule change are meant to work hand in hand: Once pregnant children are placed at the San Benito shelter, the new regulations could mean they cannot be moved out of Texas to get abortions — even if keeping them there puts them at risk.

“It’s so elegant and simple,” said White, the former head of the unaccompanied children program. “All they have to do is send them to Texas.”

Mark Betancourt is a freelance journalist and regular contributor to The California Newsroom.

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Mose Buchele with The Texas Newsroom contributed reporting.

This story was produced by The California Newsroom and The Texas Newsroom. The California Newsroom is a collaboration of public media outlets that includes NPR, CalMatters, KQED (San Francisco), LAist and KCRW (Los Angeles), KPBS (San Diego) and other stations across the state. The Texas Newsroom is a public radio journalism collaboration that includes NPR, KERA (North Texas), Houston Public Media, KUT (Austin), Texas Public Radio (San Antonio) and other stations across the state.

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