The World Bank has revised its global growth projections for 2025, now anticipating a 2.3% increase, down from the 2.7% figure projected in January. This adjustment represents the weakest growth in 17 years, excluding the recessions experienced in 2009 and 2020. The forecast for 2026 has similarly been adjusted to 2.4%, also below the earlier projection of 2.7%. According to the bank, this deceleration in global growth is largely attributed to a significant rise in trade barriers and the widespread effects of an unpredictable global policy landscape. The bank also noted that should trade disputes be resolved through agreements that halve tariffs from their levels in late May 2025, global growth could be enhanced by an average of approximately 0.2 percentage points over the span of 2025 and 2026.
In the United States, GDP growth for 2025 has been revised downward to 1.4%, compared to the 2.3% forecasted in January. Projections for China remain untouched, standing at 4.5%. The Eurozone and Japan are expected to see growth of 0.7%, marking downgrades of 0.3 and 0.5 percentage points, respectively. India's GDP growth is anticipated to be 6.3%, revised from the previous 6.7%. Meanwhile, Mexico's growth forecast has been substantially lowered to 0.2%, down from an earlier prediction of 1.5%.
