World Bank Slashes Global Growth Forecast Amid Trade Tensions

The World Bank has reduced its global growth forecast for 2025 to 2.3% due to increased tariffs and uncertainty in international trade. The bank reported expected slowdowns in major economies, citing U.S. trade policies as key disruptors. Despite this, global recession risk remains below 10%.

The World Bank has revised its global growth projection for 2025 downwards to 2.3%, indicating significant challenges posed by higher trade tariffs and economic uncertainties. This adjustment represents a notable decline of 0.4 percentage points from its previous forecast.

The report forewarns of substantial economic slowdowns across numerous countries, including the United States, China, and several European and emerging markets, exacerbated by U.S. tariff policies under President Trump. Despite fears, a global recession risk remains below 10%.

The World Bank highlights the dampening effect of heightened uncertainty, likening it to a 'fog on a runway,' impeding investment and confidence. Key U.S.-China trade discussions continue in London, aimed at resolving disputes, while signs of emergent trade dialogues provide a glimmer of optimism.