World Bank Cuts Global Growth Outlook

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The World Bank sharply cut its global economic growth forecast.

It now projects the global economy to expand by 2.3% in 2025, down from an earlier forecast of 2.7% (below, courtesy of Bloomberg). This would mark the slowest rate of global growth, outside of a recession, since 2008.

Growth is expected to recover modestly to 2.5% in 2026–2027. See, World Bank sharply cuts global growth outlook on trade turbulence:

“Trade uncertainty, especially, has weighed on the outlook, the World Bank suggested.

“International discord — about trade, in particular — has upended many of the policy certainties that helped shrink extreme poverty and expand prosperity after the end of World War II,” Indermit Gill, senior vice president and chief economist of The World Bank Group, said in the report.

It also cut its 2025 growth forecast for the U.S. by 0.9 percentage points to 1.4%, and reduced its euro area GDP expectations by 0.3 percentage points to 0.7%.

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