World Bank Cites Trade Barriers in Growth Downgrade

The World Bank has lowered its 2025 global growth forecast to 2.3%, the slowest pace since the 2008 financial crisis and part of what is projected to be the weakest decade for global growth since the 1960s. The slowdown is primarily driven by a rise in trade barriers, especially tariffs introduced by the Trump administration, affecting nearly 70% of economies including the US, China, and the eurozone. The US is projected to grow just 1.4% in 2025, and both global trade and investment growth have slowed sharply. These trade tensions are undermining both advanced and developing economies, with many regions facing stagnating or declining living standards. The World Bank urges countries to pursue greater liberalization of trade and investment to counteract these trends. Notably, Türkiye's growth outlook has been revised upward due to recent strong momentum and favorable conditions.