The global economy is set to experience its weakest decade of economic growth in over 50 years, according to projections by the World Bank (WB). Amid rising trade tensions and tariff policies led by former U.S. President Donald Trump, global growth is forecasted at just 2.3% for this year, with challenges expected to persist throughout the decade. The imposition of tariffs, including a universal 10% levy on imports into the U.S., has disrupted international trade systems, creating uncertainty and complexity in the global economic landscape. The WB warns that continued trade barriers and political uncertainty could weaken confidence, disrupt markets, and hinder global trade. However, the organization does not predict a global recession, estimating the likelihood at less than 10%. Economists highlight that prolonged disputes have reversed many of the economic gains achieved since the post-World War II era, impacting poverty reduction and prosperity. For Latin America, the slowdown poses significant risks, particularly for major economies reliant on exports. Mexico, for example, faces minimal growth of just 0.2% this year due to U.S. tariffs, while Brazil, Chile, and Peru are also expected to see slower growth.
— new from BBC
