Global economic growth is set to fall sharply this year, according to a World Bank report released Tuesday, citing rising trade barriers and market uncertainty amid US President Donald Trump’s shifting tariff agenda.
The World Bank predicts global economic output to expand by 2.3% in 2025, a significant drop from last year’s 2.8% growth rate.
The US economic growth rate is expected to halve, the bank forecast. China will also see slower growth, but government support is expected to insulate its economy.
Halving tariffs would boost growth, the report said: The bank’s chief economist warned that “without a swift course correction, the harm to living standards could be deep.”
The report comes as Washington and Beijing hold trade talks, with the likely focus on lowering export controls on key commodities like rare earths and chips — not tariffs.