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.
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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
Downgrade global economic growth forecasts due to trade wars, impacting U.S., China, and Europe.
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.
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.
Articles (9)
Center (5)
"…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."
BBC News·22d·"…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."
NBC News·22d·"…The World Bank sharply downgraded its global economic growth forecast to just 2.3% due to the adverse effects of trade wars."
ABC News·22d·"…The World Bank sharply downgrades global economic growth forecast for this year due to trade wars."
ABC News·22d·"…The World Bank sharply downgraded its global economic growth forecast to just 2.3%, citing trade wars and rising trade barriers as significant factors."
Associated Press·22d·FAQ
The downgrade in global economic growth forecasts is primarily due to ongoing trade wars and geopolitical tensions, which have impacted economies worldwide, including those of the U.S., China, and European countries.
The U.S.-China trade war has the potential to negatively impact China's economy, which could lead to increased greenhouse gas emissions if stimulus measures focus on traditional industries rather than clean energy technologies.
India is projected to remain the fastest-growing major economy, with a growth rate of 6.3% this year, highlighting regional disparities in economic performance.
History
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