World Bank cuts global economic growth forecast

The World Bank has updated its forecast for the global economy, reducing the growth rate for 2025 to 2.3%. This is 0.4% lower than previous expectations. The reasons for the revision are deepening trade conflicts and uncertainty in global economic policy. Despite this, the World Bank does not foresee a global recession but warns of the slowest economic growth in decades.

Global economic growth continues to slow

The main factors influencing the slowdown in growth are trade tensions, high inflation, and economic instability. The World Bank noted that these issues have a significant impact on economic growth, especially in developing countries, which face difficulties in creating jobs and combating poverty.

In 2025, global GDP is expected to grow by 2.3%, the lowest rate since 2008, excluding global recessions such as the aftermath of the 2009 financial crisis and the COVID-19 pandemic. The growth rate of global trade will also slow to 1.8%, compared to 3.4% last year.

Economic tensions exacerbated by inflation

The main impact on the global economy comes not only from trade tensions but also from rising inflation, which exceeds pre-pandemic levels. The World Bank forecasts that global inflation will average 2.9% in 2025, affecting purchasing power and consumer demand.

Slower trade growth and rising tariffs create challenges for countries that are unable to maintain production growth at appropriate levels. These economic problems hinder efforts to fight poverty and inequality on a global scale.

Impact on developing countries and per capita income

The slowdown in global economic growth will particularly affect developing countries. The World Bank highlighted that the expected growth in per capita income in these countries will be just 2.9% in 2025, the lowest result since the early 2000s. This contributes to increasing social inequality and complicates the task of narrowing the income gap with developed countries.

This situation threatens the plans of many developing countries to improve their citizens' standard of living. The Bank warns that slow economic growth will hinder job creation and poverty reduction programs.

Future projections and challenges for global economies

According to the World Bank's forecasts, the growth rate of the global economy will remain low in the coming years. By 2027, the average GDP growth rate will be just 2.5%, the lowest figure in decades. In the context of global uncertainty and slowing trade, the world's economies will face new challenges that could affect the economic well-being of many countries.

Developing countries will find themselves in a particularly difficult situation, where low growth rates will hinder the resolution of social and economic issues such as poverty and inequality.