Sunday, June 15, 2025

World Bank Cuts 2025 Global Growth Forecast | Economic Slowdown Alert

World Bank Slashes Global Growth Forecast for 2025

Date: June 13, 2025

🌍 Global Economic Slowdown Ahead

The World Bank has downgraded its global economic growth forecast for 2025 from 2.7% to 2.3%, citing rising trade tensions and policy uncertainty. This marks the slowest pace of growth outside of recessions since 2008.

🔻 Key Highlights:

  • 70% of countries saw growth projections lowered, including the U.S., China, and major European economies.
  • Global trade is expected to slow to just 1.8% in 2025, down from 3.4% in 2024.
  • Inflation may remain elevated around 2.9% globally.
  • The risk of a global recession remains under 10% for now.

📉 Impact on Developing Economies

Emerging markets are expected to grow at 3.8%, a downward revision. Countries relying on exports or foreign investment may face slower growth and increased debt burdens.

📢 World Bank's Recommendation

The report urges world leaders to reduce trade barriers and avoid protectionist policies. A rollback in tariffs could add about 0.2% to global growth over the next two years.

📊 Summary Table

Metric Forecast
Global GDP Growth (2025) 2.3%
Trade Growth (2025) 1.8%
Inflation (Global) 2.9%
Recession Risk Under 10%

🔗 Source:

Reuters – World Bank Cuts Global Growth Forecast

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