The world economy in 2025 will increase more slowly than expected - only 2.3%. Such an updated forecast was published by the World Bank in its June report. This is 0.4 percentage less than expected at the beginning of the year.
According to the report, key factors of slowing are increased trade tensions, political uncertainty and general weakening of global demand. The forecasts have been reduced to almost 70% of the world's economies, including the United States, European countries and Japan.
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USA: Expected GDP growth at 1.4% (0.9 p.
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Eurozone: 0.7% (minus 0.3 p.).
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Japan: 0.7% (minus 0.5 p.).
On average, world economic growth by 2027, according to the bank, will be only 2.5%-the lowest rate since the 1960s.
In 2025, world trade growth will decrease to 1.8% compared to 3.4% in 2024. Inflation will remain higher than the dopandemic level and reach an average of 2.9%. The impact will have tariffs, supply chains and tensions in the labor markets.
The World Bank also warns that slow growth will be particularly painful in developing countries. It is expected that the growth rate of per capita in these countries will be only 2.9% - which is 1.1 pp. Less than the average 2000–2019.
"The slowdown in economic growth will impede the efforts of developing economies aimed at creating jobs, overcoming poverty and reducing global inequality," the World Bank experts warn.
