In a surprising move, the World Bank has slashed its outlook for global economic growth. Citing rising trade tensions and persistent policy uncertainty, the latest report now paints a cooler picture for economies around the world — with nearly 70% of them seeing downgraded forecasts.
The report reveals that the global growth forecast for 2025 has dropped from 2.7% to 2.3%, and the 2026 projection is now 2.4% instead of 2.7%. Advanced economies are expected to expand by 1.2% this year, down from previous estimates of 1.7%. Meanwhile, emerging market and developing economies have seen a slight downgrade to a 3.8% growth forecast.
For example, the United States is now expected to grow by 1.4% in 2025 — a drop of 0.9 percentage points from earlier forecasts, and just half of the 2.8% growth seen in 2024. Both the Euro Area and Japan are predicted to achieve just 0.7% growth, lower than earlier estimates, while the Chinese mainland's growth forecasts for both 2025 and 2026 remain unchanged.
Indermit Gill, the World Bank Group's chief economist, warned that without a swift course correction, the harm to living standards could be deep. He also pointed out that outside of Asia, many developing economies are struggling to close the per capita income gap with advanced economies. This cautionary tone underscores the stakes for investors, students, and young entrepreneurs who follow global trends closely.
For young readers and professionals alike, these shifts in forecasts highlight a complex and dynamic economic stage. Whether you’re a student, a budding entrepreneur, or simply curious about the world, it’s clear that trade policies and economic decisions made today will shape our tomorrow. Stay tuned for more updates on this turbulent global journey. 🔍💡
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World Bank trims global growth outlook on trade barriers, uncertainty
cgtn.com
