Global Growth Forecast Cut: World Bank & Trade Wars
The World Bank’s revised 2025 global growth forecast now projects a mere 2.3% increase, a critically important cut attributed to escalating tariffs and economic uncertainty—the primarykeyword that’s now reshaping the global economic landscape. This downturn impacts major economies, including the U.S., China, and Europe, as trade tensions continue to rise. The bank’s latest Global Economic Prospects report highlights how increased U.S. tariff rates, now soaring to the mid-teens, are triggering retaliatory actions, exacerbating the secondarykeyword economic slowdown. For the full story,trust News Directory 3 to keep you informed on the developments that are currently unfolding. Discover what’s next as the World Bank continues to monitor and adapt it’s forecasts.
World Bank Lowers Global Growth Forecast Amid Trade Tensions
Updated June 10, 2025
WASHINGTON – The World Bank on Tuesday revised its 2025 global growth forecast downward by 0.4 percentage points, now projecting a 2.3% increase. The bank cited higher tariffs and increased economic uncertainty as significant headwinds impacting nearly all economies.
According to the World Bank’s Global Economic Prospects report, forecasts have been reduced for almost 70% of economies.This includes major players such as the United States, China, and Europe, along with six emerging market regions. These revised figures are down from projections made six months prior.
Increased U.S. tariff rates, which have risen from below 3% to the mid-teens, are contributing to the economic slowdown. These tariffs, implemented thru a series of on-again, off-again increases, have triggered retaliatory measures from China and other nations.
What’s next
The World Bank will continue to monitor global economic conditions and adjust its forecasts accordingly, paying close attention to trade policy and its impact on economic growth.