World Bank Alarm: Global Growth Collapses to 17-Year Low. “Duties and Politics Are to Blame”
The World Bank cut its 2025 global GDP growth forecast to 2.3% from 2.7% forecast in January, which would be the lowest in 17 years, excluding the 2009 and 2020 recessions.
For 2026, global growth is forecast at 2.4% , also below the 2.7% forecast previously. The bank said global growth is slowing due to a substantial increase in trade barriers and the pervasive effects of an uncertain global political environment.
He added that if trade disputes were resolved with agreements that halve tariffs from end-May 2025 levels, global growth could be stronger by around 0.2 percentage points on average over the course of 2025 and 2026.
For the United States, GDP growth for 2025 was revised down from 1.4% to 2.3%, forecast in January. China's forecast was unchanged at 4.5% . The eurozone and Japan are both forecast to grow by 0.7%, down 0.3 and 0.5 percentage points, respectively . India's GDP is forecast to grow by 6.3% (from 6.7%) and Mexico's growth was also revised down from 1.5% to 0.2%, with a very sharp reduction due to US tariffs.
This has been the trend of world GDP in recent years:
It must be said that the World Bank's forecasts are not written in stone and the current situation is sufficiently uncertain to be able to have a more negative or positive vision, and not feel guilty. However, 2025 will be a transition year, the course of which will define the following ones with a certain precision.
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The article World Bank Alarm: Global Growth Collapses to 17-Year Low. “Duties and Politics to Blame” comes from Scenari Economici .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/banca-mondiale-allarme-crescita-globale-2025/ on Tue, 10 Jun 2025 18:59:03 +0000.