World Bank lowers global economic growth forecast

The World Bank has revised its global economic forecast for 2025, lowering the expected growth rate to 2.3%. This is 0.4% lower than previously predicted, indicating a deterioration in the economic situation. The slowdown in growth is attributed to global trade conflicts and uncertainty in the economic policies of leading countries.

The Bank noted that economic growth in 2025 could be the lowest since 2008, excluding global recessions such as the 2009 financial crisis and the 2020 pandemic. Additionally, the World Bank warned that, in the long term, the growth rate of the global economy could remain as low as it was in the 1960s.

Trade tensions and inflation slow down development

Ongoing trade tensions and rising inflation have become key factors limiting global economic growth. The World Bank pointed out that these issues are hindering economic recovery, particularly for developing countries that are striving to reduce poverty and improve living standards.

Forecasts for global trade growth have also been revised downward. The World Bank expects global trade growth to slow to 1.8% in 2025, significantly lower than last year's 3.4%. At the same time, global inflation is projected to average 2.9%, which is 0.6% higher than pre-pandemic levels. These factors are affecting consumer demand and spending, creating additional challenges for economic recovery.

Key factors slowing down global economic growth:

• Trade disputes and tariffs. Increased tariffs between leading countries are restricting the free exchange of goods and services.
• Rising inflation. Higher prices and tariffs are reducing purchasing power and slowing down consumer spending.
• Labor market issues. A shortage of workers and uncertainty in the labor market are hindering economic development.

These factors create additional difficulties for countries attempting to recover their economies after crises and challenging situations, such as the pandemic.

Long-term forecasts and consequences for economies

According to the World Bank's forecast, long-term economic growth will remain low. It is projected that by 2027, global GDP will grow by only 2.5% per year — the lowest rate in several decades. This will mean significant challenges for countries trying to improve the quality of life for their citizens and reduce social inequality.

The slowdown in growth will particularly affect developing countries, for which key challenges remain the creation of jobs and the reduction of poverty. Low growth rates will make it harder to achieve these goals and will create additional problems for the well-being of the population.