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yesterday

World Bank Sees Global Growth Slump to 2.3%

Heightened trade barriers under President Trump’s tariffs have driven the downgrade across nearly 70 percent of economies.

GDP
Containers at the Port of Ningbo-Zhoushan in China's eastern Zhejiang Province in May.
A French flag flies at the entrance of the Bank of France "Banque de France" building in Paris, France April 9, 2025. REUTERS/Abdul Saboor/File Photo
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Overview

  • The World Bank forecasts global GDP to expand by 2.3% in 2025, marking the weakest pace outside recessions since the 1960s.
  • It trimmed growth projections for nearly 70% of economies, with the US outlook cut to 1.4% after a 2.8% expansion in 2024.
  • Developing economies face steeper long-term setbacks, with per capita GDP forecast to be 6% below pre-pandemic projections by 2027.
  • India is projected to grow at a robust 6.3% in 2025-26 despite subdued investment and export conditions.
  • Trade growth is set to slow to 1.8%, global inflation to reach 2.9%, and the risk of a worldwide recession remains under 10%.