Citing trade wars, the World Bank sharply downgrades global economic growth forecast to 2.3%
President Donald Trump's trade wars are expected to slash economic growth this year in the United States and around the world, the World Bank forecast Tuesday.
Citing "a substantial rise in trade barriers'' but without mentioning Trump by name, the 189-country lender predicted that the U.S. economy - the world's largest - would grow half as fast (1.4%) this year as it did in 2024 (2.8%). That marked a downgrade from the 2.3% U.S. growth it had forecast back for 2025 back in January.
The bank also lopped 0.4 percentage points off its forecast for global growth this year. It now expects the world economy to expand just 2.3% in 2025, down from 2.8% in 2024.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
The price of dental implants may surprise you
Dental Implants | Search Ads
Search Now
Undo
In a forward to the latest version of the twice-yearly Global Economic Prospects report, World Bank chief economist Indermit Gill wrote that the global economy has missed its chance for the "soft landing'' - slowing enough to tame inflation without generating serious pain - it appeared headed for just six months ago. "The world economy today is once more running into turbulence," Gill wrote. "Without a swift course correction, the harm to living standards could be deep.''
America's economic prospects have been clouded by Trump's erratic and aggressive trade policies, including 10% taxes - tariffs - on imports from almost every country in the world. These levies drive up costs in the U.S. and invite retaliation from other countries.
Live Events
The Chinese economy is forecast to see growth slow from 5% in 2024 to 4.5% this year and 4% next. The world's second-largest economy has been hobbled by the tariffs that Trump has imposed on its exports, by the collapse of its real estate market and by an aging workforce.
The World Bank expects the 20 European countries that share the euro currency to collectively grow just 0.7% this year, down from an already lackluster 0.9% in 2024. Trump's tariffs are expected to hurt European exports. And the unpredictable way he rolls them out - announcing them, suspending them, coming up with new ones - has created uncertainty that discourages business investment.
India is once again expected to the be world's fastest-growing major economy, expanding at a 6.3% clip this year. But that's down from 6.5% in 2024 and from the 6.7% the bank had forecast for 2025 in January. In Japan, economic growth is expected to accelerate this year - but only from 0.2% in 2024 to a sluggish 0.7% this year, well short of the 1.2% the World Bank had forecast in January.
The World Bank seeks to reduce poverty and boost living standards by providing grants and low-rate loans to poor economies.
Another multinational organization that seeks to promote global prosperity - the Organization for Economic Cooperation and Development - last week downgraded its forecast for the U.S. and global economies.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
34 minutes ago
- Time of India
Since 1960, poll rolls being shared with parties: CEC Gyanesh Kumar
NEW DELHI: In a first but indirect rejoinder to Rahul Gandhi's allegations of enrolment of fake voters for Maharashtra polls, chief election commissioner Gyanesh Kumar underscored the statutory sharing of electoral rolls with all recognised political parties year after year since 1960, with a provision for them to make claims, objections and appeals. Delivering the inaugural address at the International Conference on Electoral Integrity (IDEA) in Stockholm on Tuesday, Kumar described the annual roll revision exercise in India as "the world's most rigorous and transparent", adding that it reinforced the accuracy and integrity of the electoral process. He noted that "this robust mechanism plays a vital role in upholding electoral credibility across the country, year after year". Rahul recently reiterated his charge that BJP owed its landslide win in Maharashtra last year to an unusual surge in number of voters after Lok Sabha polls. Officials in Election Commission, speaking anonymously, had dismissed the charge, saying addition of votes in Maharashtra was less than the increase in number of voters for Telangana and Jharkhand polls which were won by Congress and its allies. Congress kept up its protest, while also emphasising that EC officials had not spoken "on record". by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 오스템 임플란트 받아가세요 임플란터 더 알아보기 Undo Apprising the participants - representing election management bodies (EMBs) of around 50 countries - about the massive scale of Indian elections conducted under the watch of political parties, candidates, observers and the media, the CEC said the poll panel, with over 20 million personnel, including polling staff, police forces and observers, "becomes the world's largest organisation, surpassing the combined workforce of several national govts and major global corporations and ensures that India's nearly one billion electors are freely able to exercise their franchise". Kumar traced the evolution of Indian elections over the decades, noting how the system has adapted to increasing complexity while staying rooted in constitutional values. "From 173 million electors in 1951-52 to 979 million in 2024, and from just 0.2 million polling stations in the early years to over 1.05 million today, India's electoral journey has demonstrated both institutional foresight and unmatched scale," he said. Kumar added that 743 political parties and 20,271 candidates contested elections across the country using 6.2 million EVMs. Reflecting on the inclusive design of Indian elections, Kumar said the electoral process serves first-time voters, senior citizens aged 85+, persons with special abilities, third-gender electors, and voters in the most inaccessible regions with equal care and commitment. From polling booths with a single elector to highest altitude stations like Tashigang in Himachal Pradesh, India's commitment to leaving no voter behind is reiterated as a constitutional principle rather than a logistical challenge, he said.
Economic Times
an hour ago
- Economic Times
US Army 250th Anniversary Parade: President Donald Trump's 79th birthday Celebration Cost, Parade Route, Timing, Tickets, How to watch Livestream, Military Preparations, No Kings Protests and Women's March
Why Was June 14 Chosen? Celebration Cost Parade Route and Timing Live Events Military Preparations Tickets and How to Watch Livestream Event Schedule and Locations No Kings Protests and Women's March FAQs (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel The US Army will hold a public festival and parade in Washington, DC, on June 14 to commemorate its 250th anniversary. The day also falls on President Donald Trump's 79th birthday. The parade and events will take place on the National Mall and surrounding areas. Army officials say this is part of a broader plan to honor the Army's event is scheduled on June 14 because it marks the founding of the Continental Army. On this day in 1775, the Second Continental Congress established the Army to fight British forces. Congress appointed George Washington as commander in chief the following began nearly two years ago, but the parade was added earlier this year. Officials estimate the total cost of the event to be between $25 million and $45 million. Army Secretary Dan Driscoll told Congress that the event is meant to tell the Army's story and improve festival will run from 9:30 a.m. to 6 p.m. on the National Mall. The parade starts at 6:30 p.m., moving from 23rd Street NW to 15th Street NW along Constitution Avenue. The route ends around 7:30 p.m., followed by fireworks at 9:45 Army has placed metal plates along the parade route to protect roads from damage by heavy equipment like Abrams tanks. The tanks are fitted with rubber track pads to reduce impact. If damage occurs, the Army will pay for event will include about 6,600 soldiers, 150 vehicles and 50 aircraft. Historical and modern Army units will march in uniform. Equipment includes Abrams tanks, Bradley vehicles, helicopters and World War-era tanks and parade and festival are free to attend. People can RSVP through Livestream coverage will be available on US Army social media platforms for those who cannot attend in day will also include a wreath-laying at Arlington Cemetery, an enlistment ceremony led by Donald Trump, a parachute jump by the Golden Knights, a concert, and equipment are being organized across the US to oppose what some groups see as a political use of the event. Organizers plan 1,800 rallies nationwide. The 'No Kings' campaign and Women's March will be part of these actions. Officials expect hundreds of thousands at these 14 is the date the Continental Army was created in 1775. Congress formed it after fighting began at Lexington and officials estimate the event will cost between $25 million and $45 million, but they haven't shared exact figures for the parade portion.
Time of India
an hour ago
- Time of India
US orders partial evacuation of Iraq Embassy, says dependents of troops can leave locations across Middle East
US missions in Baghdad and Erbil started evacuating most of their diplomats in response to unspecified security threats Wednesday, reports claimed. 'President Trump is committed to keeping Americans safe, both at home and abroad. Tired of too many ads? go ad free now In keeping with that commitment, we are constantly assessing the appropriate personnel posture at all our embassies. Based on our latest analysis, we decided to reduce the footprint of our mission in Iraq,' the State Department said in an emailed statement. Defense secretary Pete Hegseth authorized the voluntary departure of US military dependents across the Middle East, Politico reported. The sudden move came after Iran's defense minister threatened to strike American based in the region if negotiations over Iran's nuclear program fail. Iran has repeatedly said its nuclear ambitions are focused on peaceful purposes like energy production. But Nasirzadeh said on Wednesday that "if a conflict is imposed on US bases are within our reach." The Baghdad embassy has already been on limited staffing, and the order will not affect a large number of personnel, according to the AP. The State Department is also authorizing the departure of nonessential personnel and their family members from Bahrain and Kuwait, giving them the option to leave the country.
