Abu Dhabi: The World Bank on Tuesday lowered its 2025 global growth forecast to 2.3 percent, down from 2.7 percent previously expected. In its latest economic prospects report, the 189-country organisation attributed the downgrade to escalating trade tensions and policy uncertainty, noting that the US President Donald Trump's extensive tariffs have strained international ties and dampened economic outlooks worldwide.
According to Emirates News Agency, this revision marks the latest in a series of downgrades by international organisations. The report highlights the ongoing challenges faced by the global economy as nations grapple with the impact of trade policies and the resulting uncertainty. The World Bank's assessment suggests that these factors are contributing to a slower pace of economic growth, affecting countries across the globe.
The World Bank's forecast serves as a crucial indicator for economic planners and policymakers, prompting discussions on potential strategies to mitigate the effects of these challenges. The organisation's analysis underscores the need for international cooperation and policy adjustments to navigate the current economic landscape.