The World Bank has warned that ongoing trade wars are expected to reduce global economic growth. According to the report, the global economy is heading towards its weakest decade since the 1960s. Trade tensions, including tariffs imposed by former U.S. President Donald Trump, have been cited as major factors affecting economies worldwide. The World Bank cut its forecast for global GDP growth this year to 2.3%, down from a previous estimate of 2.7%. This slowdown, excluding global recessions, marks the weakest growth rate in 17 years. The institution noted that rising tariffs and uncertainty are contributing to a widespread slowdown, impacting most economies globally. Fitch Ratings also downgraded its outlook for global government bonds, citing tariff increases and trade policy uncertainty. Despite ongoing U.S.-China trade talks, the erratic application of tariffs continues to affect businesses and consumers globally.
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