Author: Al Jazeera
Published on: 10/06/2025 | 00:00:00
AI Summary:
World Bank slashed its 2025 global growth forecast, citing trade tensions and policy uncertainty. On Tuesday, the bank lowered its projection for global gross domestic product (GDP) growth to 2.3 percent in its latest economic prospects report. This is the most recent in a series of downgrades by international organisations. Global growth and inflation prospects for this year and next have worsened. Trump’s off-again tariff hikes have upended global trade, increased the effective US tariff rate from below 3 percent to the mid-teens. He also engaged in tit-for-tat escalation with China. World Bank’s growth downgrade was proportionately larger for advanced economies. Commodity prices are expected to remain suppressed in 2025 and 2026. This means some 60 percent of emerging markets and developing economies have to deal with a “very nasty combination of lower commodity prices and more volatile commodity markets” World Bank warns developing economies could lower tariffs on all trading partners. World Bank says developing economies can convert preferential trade deals into pacts to boost GDP growth.
Original: 670 words
Summary: 168 words
Percent reduction: 74.93%
You must log in or # to comment.