WASHINGTON –
The World Bank on Tuesday slashed its global growth forecast for 2025 by 0.4 percentage point to 2.3%, saying that higher tariffs and heightened uncertainty posed a “significant headwind” for nearly all economies.
In its twice-yearly Global Economic Prospects report, the bank lowered its forecasts for nearly 70% of all economies — including the United States, China and Europe, as well as six emerging market regions — from the levels it projected just six months ago before U.S. President Donald Trump took office.
Trump has upended global trade with a series of on-again, off-again tariff hikes that have increased the effective U.S. tariff rate from below 3% to the mid-teens — its highest level in almost a century — and triggered retaliation by China and other countries.
World Bank slashes global growth forecast as trade tensions bite
