The World Bank has cited “a substantial increase in trade barriers” as a key factor that will slow global economic growth. The institution, which comprises 189 member countries, predicts that the U.S., the world’s largest economy, will grow at half the rate of 1.4% this year compared to 2.8% in 2024, revising its earlier forecast of 2.3% growth for 2025. The bank also cut its global growth forecast by 0.4 percentage points, now expecting the global economy to expand by just 2.3% in 2025, down from 2.8% in 2024. Erratic and aggressive trade policies, including tariffs on imports from nearly every country, have clouded U.S. economic prospects. China’s growth is expected to slow from 5% in 2024 to 4.5% this year and 4% next year, hindered by tariffs, a collapsing real estate market, and an aging workforce. The Eurozone is projected to grow by only 0.7% this year, down from 0.9% in 2024, with trade barriers affecting European exports and creating uncertainty that discourages business investment. Meanwhile, India is set to remain the fastest-growing major economy, expanding at 6.3% this year, though slower than previous forecasts. Japan’s growth is expected to pick up slightly but remain sluggish at 0.7% this year.
— new from Stamford Advocate
