World Bank Downgrades Global Economic Growth Forecast Amid Trade Tensions
The World Bank has revised its global GDP growth forecast down to 2.3% for 2024, citing trade wars and geopolitical tensions as major factors.
Overview
- The World Bank has cut its global GDP growth forecast for 2024 from 2.8% to 2.3%, marking the weakest decade for the global economy since the 1960s.
- The U.S. economic growth forecast has been downgraded to 1.4% for 2024, reflecting ongoing trade tensions and uncertainty in policy.
- China's growth is expected to slow from 5% in 2024 to 4.5% this year, contributing to the overall downgrade in global economic forecasts.
- European countries using the euro are projected to grow by only 0.7% this year, down from 0.9% in 2024, due to the same trade issues.
- Despite the global downturn, India is predicted to remain the fastest-growing major economy at 6.3% this year, highlighting regional disparities in growth.
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Analysis
Left
Downgrade global GDP growth forecast to 2.3% due to trade tensions and policy uncertainty.
The World Bank has revised its global GDP growth forecast for this year from 2.7% to 2.3%.
Global growth and inflation prospects are worsening due to high policy uncertainty and trade fragmentation, with potential for further deterioration if tariffs increase and uncertainty persists.
The tariffs, their erratic implementation and the unpredictability that both have injected into the global economy, are weighing on many businesses and consumers.
Trump’s on-again off-again tariff hikes have upended global trade, increased the effective US tariff rate from below 3 percent to the mid-teens, its highest level in almost a century, and triggered retaliation by China and other countries.
This would be the slowest growth rate outside full-blown recessions since 2008.
Center
Downgrade global economic growth forecasts due to trade wars, impacting U.S., China, and Europe.
The World Bank lowered the U.S. economic growth forecast to 1.4% for this year, down from 2.8% in 2024.
Global economic growth is projected to slow to 2.3% in 2025 from 2.8% in 2024.
The Chinese economy is projected to experience a gradual decline in growth, from 5% in 2024 to 4.5% this year and 4% next year.
The 20 European countries sharing the euro currency are projected to grow by only 0.7% this year, a decrease from 0.9% in 2024 according to the World Bank.
India is projected to be the world's fastest-growing major economy, with a growth rate of 6.3% this year, slightly lower than the previous year.
Right
Acknowledge the global economy's failure to achieve a 'soft landing,' according to the World Bank.
World Bank chief economist Indermit Gill stated that the global economy has missed its chance for a 'soft landing.'
Left
Downgrade global GDP growth forecast to 2.3% due to trade tensions and policy uncertainty.
The World Bank has revised its global GDP growth forecast for this year from 2.7% to 2.3%.
Global growth and inflation prospects are worsening due to high policy uncertainty and trade fragmentation, with potential for further deterioration if tariffs increase and uncertainty persists.
The tariffs, their erratic implementation and the unpredictability that both have injected into the global economy, are weighing on many businesses and consumers.
Trump’s on-again off-again tariff hikes have upended global trade, increased the effective US tariff rate from below 3 percent to the mid-teens, its highest level in almost a century, and triggered retaliation by China and other countries.
This would be the slowest growth rate outside full-blown recessions since 2008.
Center
Downgrade global economic growth forecasts due to trade wars, impacting U.S., China, and Europe.
The World Bank lowered the U.S. economic growth forecast to 1.4% for this year, down from 2.8% in 2024.
Global economic growth is projected to slow to 2.3% in 2025 from 2.8% in 2024.
The Chinese economy is projected to experience a gradual decline in growth, from 5% in 2024 to 4.5% this year and 4% next year.
The 20 European countries sharing the euro currency are projected to grow by only 0.7% this year, a decrease from 0.9% in 2024 according to the World Bank.
India is projected to be the world's fastest-growing major economy, with a growth rate of 6.3% this year, slightly lower than the previous year.
Right
Acknowledge the global economy's failure to achieve a 'soft landing,' according to the World Bank.
World Bank chief economist Indermit Gill stated that the global economy has missed its chance for a 'soft landing.'
Articles (9)
The Guardian·6d·"…The World Bank has cut its forecasts for growth, blaming Donald Trump’s trade war and says the 2020s are on course to be the weakest decade for the global economy since the 1960s."
Al Jazeera·6d·"…The gloomier projections come as Trump imposed a 10 percent tariff on imports from almost all US trading partners in April as well as higher rates on imports of steel and aluminium."
CNN·6d·"…The sharp increase in tariffs and the ensuing uncertainty are contributing to a broad-based growth slowdown and deteriorating prospects in most of the world’s economies."
NBC News·6d·"…The World Bank sharply downgraded global economic growth forecasts, predicting a troubling 2.3% expansion for the world economy this year, down from earlier estimates."
ABC News·6d·"…The World Bank sharply downgraded its global economic growth forecast to just 2.3% due to the adverse effects of trade wars."
ABC News·6d·"…The World Bank sharply downgrades global economic growth forecast for this year due to trade wars."
Associated Press·6d·"…The World Bank sharply downgraded its global economic growth forecast to just 2.3%, citing trade wars and rising trade barriers as significant factors."
BBC News·6d·"…The global economy will see the slowest decade for global growth since the 1960s as the effect of Donald Trump's tariffs are felt, the World Bank has predicted."
Newsmax·6d·"…The bank also lopped 0.4 percentage points off its forecast for global growth this year."
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