The World Bank has lowered its global growth forecast for 2025 to 2.3%, warning that escalating trade tensions and policy uncertainty - particularly stemming from U.S. tariffs - pose major threats to global economic stability.
The World Bank sharply cut its global growth forecast for 2025 by 0.4 percentage point to 2.3%, highlighting rising tariffs and growing uncertainty as significant headwinds affecting almost all economies.
In its Global Economic Prospects report, the Bank revised down projections for nearly 70% of all countries - including the U.S., China, and most of Europe - as well as six emerging market regions. These downgrades come just months after the start of a new wave of trade policy shifts under U.S. President Donald Trump.
Since taking office, Trump has implemented a series of tariff hikes that have lifted the effective U.S. tariff rate from under 3% to the mid-teens - its highest in nearly 100 years. The moves have triggered reciprocal tariffs from key trading partners, most notably China.
While U.S. officials argue that increased investment and tax reforms will offset the impact, the World Bank joins other global institutions in issuing stark warnings. The report stops short of predicting a recession but notes that the projected growth would mark the weakest performance in a non-recession year since 2008.
By 2027, global GDP growth is expected to average just 2.5% - the slowest pace of any decade since the 1960s.
The World Bank also lowered its 2025 global trade growth forecast to 1.8%, down from 3.4% in 2024 and significantly below the 2000s average of 5.9%. This forecast excludes tariff increases postponed until July 9 to allow for further negotiations.
Global inflation is projected to reach 2.9% in 2025, remaining above pre-pandemic levels due to persistent tariffs and tight labor conditions.
The Bank cautioned that risks remain heavily skewed to the downside. A hypothetical 10-point increase in average U.S. tariffs - matched by proportional retaliation - could cut another 0.5 percentage point from global growth in 2025.
“An escalation in trade barriers could lead to a near-paralysis of global trade in the second half of this year,” the report warned, “accompanied by plummeting confidence, rising uncertainty, and financial market volatility.”
Australia’s Prime Minister Anthony Albanese said Canberra supports the U.S. strike on Iran and calls for de-escalation and diplomacy.
The International Atomic Energy Agency (IAEA) confirmed that U.S. strikes hit entrances to tunnels storing part of Iran’s enriched uranium at the Isfahan nuclear site.
Global oil prices surged on Sunday as the Israel-Iran conflict continued to rattle markets, with Brent crude rising 3.9% to $80 per barrel and U.S. crude climbing 4.3% to $77 per barrel.
Tesla has begun a small-scale robotaxi trial in Austin, Texas, deploying about 10 self-driving cars to pick up paying passengers in a limited area, as the state enacts new regulations for autonomous vehicles.
Israel has reopened its airspace briefly and plans to expand rescue flights to help tens of thousands stranded by widespread cancellations following U.S. strikes on Iran’s nuclear sites.
Australia’s Prime Minister Anthony Albanese said Canberra supports the U.S. strike on Iran and calls for de-escalation and diplomacy.
China has condemned the U.S. strike on Iran’s nuclear sites, warning it has undermined Washington’s credibility and risks triggering a broader regional crisis.
Some Democratic and Republican lawmakers are urging Congress to limit President Donald Trump’s military actions in Iran, warning against deeper U.S. involvement in the escalating Middle East conflict.
The International Atomic Energy Agency (IAEA) confirmed that U.S. strikes hit entrances to tunnels storing part of Iran’s enriched uranium at the Isfahan nuclear site.
The Israeli military says Iran has launched missiles at Israel, following Israeli air strikes on military sites in Tehran, Karaj, and other parts of Iran. Iranian air defences have been activated in multiple locations amid escalating hostilities.
Iranian missiles struck multiple locations across Israel and neighbouring regions early Friday morning, including a Microsoft office complex, according to emergency responders and local media reports.
A high-speed tram derailment in central Gothenburg, Sweden, has left at least eight people injured late on Thursday (19 June), after the vehicle slammed into a snack bar on Avenyn Avenue.
China has unveiled a mosquito-sized bionic drone designed for covert military operations and battlefield reconnaissance, marking a major advance in micro-robotics and stealth technology as part of the country’s growing focus on next-generation warfare capabilities.
The 2025 G7 Leaders’ Summit was held June 15–17 in Kananaskis, Alberta, under Canada’s presidency. Prime Minister Mark Carney framed the meeting around priorities of protecting communities, energy and climate security, the digital transition, and future partnerships.
The USS Nimitz is heading to the Middle East amid tensions between Israel and Iran. The U.S. aircraft carrier has a decades-long history in the region, from the 1979 hostage crisis to modern deployments, often serving as a key asset during periods of rising friction with Iran.
Germany’s federal government spent over 1.2 billion euros on software, licenses and IT services in 2024, more than 25% higher than the previous year.
Japan’s core inflation rose to a more than two-year high in May, exceeding the central bank’s 2% target for over three years and increasing pressure on the Bank of Japan (BOJ) to resume rate hikes.
Two Nigerian communities will take Shell to trial in the UK in 2027 after winning a court ruling over Niger Delta oil pollution.
The European Investment Bank (EIB) announced Friday it is raising its financing ceiling to a record €100 billion to accelerate investments in defence, energy security and Europe’s technological leadership.
Meta has teamed up with Oakley to release AI-powered smart glasses, expanding its push into wearable tech after the success of Ray-Ban Meta glasses. The social media company is expanding its partnership with Oakley and Ray-Ban-parent EssilorLuxottica.
Australia’s Prime Minister Anthony Albanese said Canberra supports the U.S. strike on Iran and calls for de-escalation and diplomacy.
China has condemned the U.S. strike on Iran’s nuclear sites, warning it has undermined Washington’s credibility and risks triggering a broader regional crisis.
Some Democratic and Republican lawmakers are urging Congress to limit President Donald Trump’s military actions in Iran, warning against deeper U.S. involvement in the escalating Middle East conflict.
The International Atomic Energy Agency (IAEA) confirmed that U.S. strikes hit entrances to tunnels storing part of Iran’s enriched uranium at the Isfahan nuclear site.
The Israeli military says Iran has launched missiles at Israel, following Israeli air strikes on military sites in Tehran, Karaj, and other parts of Iran. Iranian air defences have been activated in multiple locations amid escalating hostilities.
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