World Bank Warns of Stagnant Global Growth and Rising Economic Risks

Global growth is expected to stabilize at 2.7% through 2025, but challenges like trade tariffs and slow recovery threaten vulnerable economies.

The World Bank projects global economic growth to remain at a modest 2.7% for 2025, insufficient to recover from past economic shocks like the COVID-19 pandemic.
Developing countries face the weakest long-term growth prospects since 2000, with many falling further behind wealthier nations in closing income gaps.
An estimated 622 million people are expected to remain in extreme poverty by 2030, with hunger and undernutrition impacting a similar number of individuals.
Proposed U.S. trade tariffs under President Donald Trump could reduce global growth by 0.2 to 0.3 percentage points in 2025, especially if retaliatory measures are implemented.
Economic risks include persistent inflation, geopolitical conflicts such as the war in Ukraine and unrest in the Middle East, and weak industrial performance in regions like the Eurozone, particularly Germany.