The World Bank has reduced its global growth forecast for 2025 by 0.4 percentage points to 2.3%, citing higher tariffs and increased uncertainty as significant obstacles for economies worldwide. In its Global Economic Prospects report, the bank revised downward forecasts for nearly 70% of all economies, including major players like the U.S., China, and Europe. The report highlights that global trade growth is expected to slow to 1.8% in 2025, down from 3.4% in 2024. Additionally, global inflation is projected to reach 2.9% in 2025 due to tariff increases and tight labor markets. The World Bank warns that further tariff escalations could lead to a more pronounced slowdown in global trade. Despite these challenges, the risk of a global recession remains below 10%. \n— new from Reuters
