The World Bank has predicted that global growth will slow down to its worst decade since the 1960s, with a forecast of only 2.3% in 2025. Nearly two-thirds of countries have had their growth forecasts cut due to rising trade tensions and investor uncertainty.
The US was among those downgraded, with the bank predicting lower growth rates in 2025 and 2026. However, China’s growth forecast remained stable due to its financial stability.
The report warns that higher tariffs could lead to a “global trade seizure” and widespread market turmoil. The chances of a global recession are less than 10%, but further cuts in growth are expected if the US increases tariffs.
A new round of talks between the US and China is underway, aiming to resolve their ongoing trade war. The OECD has also downgraded its forecast for global growth, now expecting it to slow to a “modest” 2.9%.
Source: https://www.bbc.com/news/articles/cg4v9nr23r7o