World Bank Downgrades 2025 Global Growth Outlook
(MENAFN) The World Bank drastically cut its global economic growth forecast for 2025 by 0.4 percentage points to 2.3%, citing a sharp surge in trade barriers as a major drag on the economy.
This downgrade signals the slowest global growth pace since the 2008 financial crisis.
"Global growth is slowing due to a substantial rise in trade barriers and the pervasive effects of an uncertain global policy environment," the bank explained in its latest Global Economic Prospects report.
The World Bank highlighted that rising tariffs and the resulting uncertainty are fueling a widespread slowdown, worsening outlooks for most countries worldwide.
The forecast for the US economy took a steep hit, falling from 2.3% growth in the bank’s January projection to just 1.4% for 2025.
Similarly, the eurozone’s growth outlook was revised downward by 0.3 percentage points to 0.7% for 2025, alongside lowered forecasts of 0.8% for 2026 and 1% for 2027.
China’s growth estimates remained steady at 4.5% for this year and 4% in 2026.
Conversely, Turkey’s economy is expected to expand more robustly, with a 2025 growth forecast raised by 0.5 percentage points to 3.1%. The country’s GDP is projected to grow 3.6% next year and accelerate to 4.2% in 2027.
Indermit Gill, senior vice president and chief economist at The World Bank Group, warned that the window for a "soft landing" in the global economy has closed as new turbulence emerges.
"International discord – about trade, in particular – has upended many of the policy certainties that helped shrink extreme poverty and expand prosperity after the end of World War II," Gill stated.
"The global economy today is at an inflection point. The forces that once drove economic convergence and lifted billions out of poverty are now in retreat," he added.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
