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Fargoers are loaded with cranes on container ships on the Burchardkai container in Hamburg, Northern Germany, June 3, 2025.
Fabian Bimer | AFP | Gets the image
The World Bank dramatically reduced its global economic growth forecasts on Tuesday, citing violations of the uncertainty of trade, in particular.
It now expects that the global economy will expand to 2.3% in 2025, which is 2.7% compared to the previous forecast.
“This will mean the slowest pace of global growth since 2008, except for open global recesses,” the bank said in its report by global economic prospects.
Especially, the uncertainty of trade was offered by the World Bank.
“International strife – in particular, about trade – has caused a lot of confidence in politics, which helped reduce extreme poverty and expand prosperity after the end of World War II,” the senior vice -president and chief economist of the World Bank group said.
It also reduced its growth forecast in 2025 for the US by 0.9 percentage points to 1.4%and reduced GDP expectations by 0.3 percentage points to 0.7%.
The bank noted that the escalation of trade tensions may push the growth even lower, but the picture may improve if large economies reach long trade agreements.
“Our analysis suggests that if today’s trade disputes have been resolved with agreements, which twice as compared to their level at the end of May 2025, global growth may be more stronger by about 0.2 percentage points on average over 2025 and 2026,” Gil said.
US and many of his trading partners are currently negotiating after US President Donald Trump imposed by steep tariffs In many countries in April. For example, this week the US and China meet in London after both countries agreed Temporarily cut the levies After talking in May.
Negotiations are also ongoing between the US and the European Union with Less than a month Pass before the previously announced tariffs will be fully force.
By reducing its global growth expectations, the World Bank monitors different other bodies, including the organization of economic cooperation and development, which also led the fall out of the trade and tariff uncertainty as a major factor.
Earlier this month, the OECD said it expects global growth to slow down to 2.9% in 2025, as well as overcoming its forecast with the possibility of future tariff developments. Earlier this year, he predicted a global growth of 3.1%.
