Global Economic Growth Stalled by Trade Wars, Says World Bank

The World Bank forecasts reduced economic growth globally due to escalating trade wars, most notably initiated by U.S. policies. This has resulted in downgraded growth prospects for major economies, including China, Europe, and Japan. India remains a growth leader, but its expansion is also slowing.

Trade wars, notably driven by U.S. policies, are expected to significantly hinder economic growth this year, both in the United States and around the world, according to a World Bank forecast released Tuesday.

Without directly mentioning President Donald Trump, the World Bank reported that the U.S., the world's largest economy, is projected to grow by only 1.4% this year, a stark contrast to the 2.8% observed in 2024. The downgrade continues with global growth expectations cut to 2.3% for 2025, down from 2.8% in 2024.

World Bank chief economist Indermit Gill emphasized that the impact of trade policies, including widespread tariffs, has disrupted efforts for a 'soft landing' for the global economy. The repercussions have significantly slowed growth in China's economy, impacted European exports, and resulted in continued uncertainty that discourages business investment worldwide.