World Bank slashes global growth forecast

The World Bank cut its global growth forecast for 2025 to 2.3%, citing higher tariffs and uncertainty as "significant headwinds." The forecast was reduced for nearly 70% of economies, including the U.S., China, and Europe.

U.S. tariffs have risen significantly, now at their highest in almost a century, causing retaliatory measures from other countries.

While the World Bank avoided predicting a recession, it stated this year’s growth would be the weakest outside a recession since 2008. Global trade growth is expected to drop to 1.8% in 2025.

The report warned that risks remain "tilted decidedly to the downside" with potential further tariff increases exacerbating the situation. However, the likelihood of a global recession remains under 10%.