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.”
Chinese President Xi Jinping will visit Kazakhstan next week to attend a key Central Asia-China summit, the Kazakh presidency announced on Wednesday.
A historic May heat wave pushed Greenland’s ice melt to 17 times its average rate and sent Iceland’s temperatures soaring to record-breaking highs, raising urgent alarms about Arctic climate vulnerability.
Azerbaijani Prime Minister Ali Asadov announced that joint efforts are ongoing with Georgia, Romania, and Hungary on the development of the “Green Energy Corridor” project, which will run across the Black Sea seabed to Europe.
In response to mounting backlash over delayed payments and a deepening price war, major Chinese automakers including BYD, Chery, Geely, SAIC, BAIC, Xpeng, and Xiaomi have pledged to pay suppliers within 60 days, aligning with new government rules that came into effect on June 1.
On Wednesday, British Finance Minister Rachel Reeves outlined a strategic spending plan focused on health, defence, and infrastructure in an effort to stimulate economic growth and restore public confidence in the Labour government.
Chinese President Xi Jinping will visit Kazakhstan next week to attend a key Central Asia-China summit, the Kazakh presidency announced on Wednesday.
A historic May heat wave pushed Greenland’s ice melt to 17 times its average rate and sent Iceland’s temperatures soaring to record-breaking highs, raising urgent alarms about Arctic climate vulnerability.
Azerbaijani Prime Minister Ali Asadov announced that joint efforts are ongoing with Georgia, Romania, and Hungary on the development of the “Green Energy Corridor” project, which will run across the Black Sea seabed to Europe.
The Iranian Foreign Minister Abbas Araghchi arrived in Norway on Wednesday to take part in the 22nd Oslo Forum, while the UN nuclear watchdog will discuss Iran and days ahead of his upcoming meeting with the U.S. envoy Steve Witkoff in Oman.
Prime Minister Petteri Orpo has announced Finland's ambition to host a European AI gigafactory. The move aims to boost national growth by building on the success of the LUMI supercomputer, with telecommunications giant Nokia poised to lead the project's business consortium.
Start your day informed with AnewZ Morning Brief: here are the top news stories for June 8th, covering the latest developments you need to know.
Presidential candidate Miguel Uribe Turbay is in critical condition after being shot three times — including twice in the head — during a campaign event in Bogotá.
A 30-year-old woman was shot by police in Munich on Saturday evening after stabbing two people at Theresienwiese, a central park best known for hosting Oktoberfest.
Mexican President Claudia Sheinbaum has condemned U.S. immigration raids and National Guard deployment in Los Angeles, calling for reforms instead of enforcement.
Kazakhstan and the UK are strengthening defense ties with a new Military Cooperation Plan, focusing on peacekeeping and military education.
Kazakhstan and Meta are exploring joint efforts to boost AI innovation, strengthen digital safety, and enhance online protections for the youth. A new Instagram tool for teens and a forum at Maqsut Narikbayev University mark steps toward safer digital spaces.
A human-sized Labubu toy has sold for over $150,000 at a Beijing auction, setting a new record as the blind box collectible craze shifts into the realm of high-end art.
The forum features plenary sessions, industry-focused panel discussions, B2B meetings, and a large investment exhibition.
Marks & Spencer has resumed online orders in Great Britain six weeks after a cyber-attack forced it to halt sales, though full online services are still being restored.
Sales of electric and hybrid vehicles in China saw a strong year-on-year growth in May, boosted by government-backed trade-in programs designed to stimulate domestic consumption.
Chinese President Xi Jinping will visit Kazakhstan next week to attend a key Central Asia-China summit, the Kazakh presidency announced on Wednesday.
A historic May heat wave pushed Greenland’s ice melt to 17 times its average rate and sent Iceland’s temperatures soaring to record-breaking highs, raising urgent alarms about Arctic climate vulnerability.
Azerbaijani Prime Minister Ali Asadov announced that joint efforts are ongoing with Georgia, Romania, and Hungary on the development of the “Green Energy Corridor” project, which will run across the Black Sea seabed to Europe.
The Iranian Foreign Minister Abbas Araghchi arrived in Norway on Wednesday to take part in the 22nd Oslo Forum, while the UN nuclear watchdog will discuss Iran and days ahead of his upcoming meeting with the U.S. envoy Steve Witkoff in Oman.
Prime Minister Petteri Orpo has announced Finland's ambition to host a European AI gigafactory. The move aims to boost national growth by building on the success of the LUMI supercomputer, with telecommunications giant Nokia poised to lead the project's business consortium.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment