The World Bank decreased its worldwide growth projection during Tuesday because of President Trump’s trade policies and additional geopolitical uncertainties.
The World Bank predicts that global GDP will expand at 2.3% in 2025 which represents the lowest growth rate outside a recession since 2008. The United States faces a 1.4% growth rate this year while its 2.8% growth rate from 2024 will decline because of rising tariffs and unpredictable policies that affect trade and investment.
World Bank chief economist Indermit Gill declared that the global economy lost its opportunity to achieve a smooth transition before entering a state of increased danger. According to his warning the world economy currently faces another period of turbulence because unfastened policy adjustments will lead to lasting damage to standard of living.
The bank predicts that global trade expansion will slow down to 1.8% during 2025 after reaching 3.4% in 2024. The inflation rate will stay higher than pre-pandemic levels at 2.9% because of trade interruptions and limited labor availability.
The report emerges during ongoing trade negotiations between the U.S. and China in London where negotiators attempt to reduce economic damage from worldwide trade conflicts. The economic forecast shows that a recession is unlikely but the world economy faces stagnation risks when trade disputes become more severe.
