The World Bank has warned that global economic growth is heading toward its weakest decade since the 1960s, citing trade tensions and rising tariffs as key factors. According to a recent report, the global economy is projected to grow at its slowest pace in 17 years, excluding recessions, with a forecasted GDP growth of 2.3% for the year, down from an earlier estimate of 2.7%. The report attributes this slowdown to the impact of increased tariffs, particularly those imposed by former U.S. President Donald Trump on key trading partners. These measures have created widespread uncertainty, affecting trade volumes, supply chains, and investment. The World Bank noted that nearly 70% of global economies have seen downward revisions in growth forecasts, with developing nations also facing challenges from rising public debt levels. Fitch Ratings echoed these concerns, downgrading its outlook for global government bonds due to tariff-related disruptions. Despite ongoing U.S.-China trade talks, the erratic application of tariffs continues to weigh on businesses and consumers worldwide.
— new from WRAL.com
