World Bank Warns of Slow Global Growth

The World Bank has forecasted global economic growth to stagnate at 2.7% in 2025, marking the weakest performance since 2019, largely due to the threat of U.S. tariffs under President-elect Donald Trump's administration. These tariffs, including proposed 10% duties on global imports and higher rates on goods from Canada, Mexico, and China, could lead to significant retaliatory measures, further hampering global trade. The World Bank has warned that even a modest increase in tariffs could reduce global growth by 0.2% to 0.3%, depending on how trading partners respond. Additionally, persistent high interest rates are expected to dampen investment and economic expansion across developed and developing nations. The economic outlook is particularly concerning for developing economies, which face their weakest growth prospects since 2000, as they struggle with high debt and low foreign investment. Overall, the World Bank emphasizes the need for nations to implement domestic reforms to foster economic resilience amidst these challenges.