### World Bank Cuts Global Growth Forecast Amid Escalating Trade Tensions The World Bank has significantly revised its global growth forecast for 2025, reducing it by four-tenths of a percentage point to **2.3%**. This adjustment reflects the increasing trade tensions and policy uncertainties, particularly stemming from the tariffs imposed by U.S. President Donald Trump. The forecast now indicates the slowest global growth since the 1960s, with nearly **70%** of economies, including major players like the U.S., China, and Europe, experiencing downward revisions in their growth projections [https://www.straitstimes.com/world/united-states/world-bank-cuts-global-growth-forecast-as-trade-tensions-heighten-uncertainty, https://www.moneycontrol.com/world/world-bank-warns-us-growth-to-halve-as-trump-tariffs-hit-global-economy-article-13110284.html]. ### Breakdown of the World Bank's Forecast and Implications 1. **Revised Growth Projections**: - The World Bank has cut its global growth forecast for 2025 to **2.3%**, down from **2.7%**. This marks a significant decline attributed to trade wars and tariff policies [https://www.benzinga.com/markets/macro-economic-events/25/06/45877836/world-bank-slashes-global-growth-forecast-to-lowest-since-1960s-amid-trump-tariffs-if-the-right-policy-actions-are-taken]. 2. **Impact of U.S. Tariffs**: - The tariffs imposed by the Trump administration are expected to halve U.S. economic growth, contributing to a broader slowdown in global trade [https://www.moneycontrol.com/world/world-bank-warns-us-growth-to-halve-as-trump-tariffs-hit-global-economy-article-13110284.html]. 3. **Global Economic Landscape**: - The forecast indicates that the economic outlook has deteriorated for nearly **70%** of the world's economies, with significant headwinds expected from heightened uncertainty and rising inflation risks [https://www.investing.com/news/economy-news/world-bank-slashes-global-growth-forecast-as-trade-tensions-bite-4089000]. ### Supporting Data and Evidence - **Growth Rate Adjustments**: - The World Bank's latest report indicates a **0.4 percentage point** reduction in the global growth forecast, now standing at **2.3%** for 2025 [https://www.reuters.com/world/china/world-bank-slashes-global-growth-forecast-trade-tensions-bite-2025-06-10]. - **Historical Context**: - This forecast represents the weakest performance in **17 years**, outside of outright global recessions, highlighting the severity of the current economic climate [https://www.newindianexpress.com/business/2025/Jun/10/world-bank-cuts-growth-forecast-fearing-further-trade-tumult-warns-of-deep-harm]. ### Conclusion: Implications of the World Bank's Forecast In summary, the World Bank's decision to cut the global growth forecast to **2.3%** underscores the significant impact of trade tensions and U.S. tariff policies on the global economy. The findings can be summarized as follows: 1. **Global Growth Decline**: The forecast has been reduced to **2.3%**, the lowest since the 1960s. 2. **U.S. Economic Impact**: Tariffs are expected to halve U.S. growth, affecting global trade dynamics. 3. **Widespread Economic Challenges**: Nearly **70%** of economies are facing downward revisions, indicating a broad economic slowdown. The situation calls for urgent policy actions to mitigate the adverse effects of trade tensions and restore confidence in the global economic outlook [https://www.scmp.com/news/world/article/3313910/world-bank-warns-slowest-global-growth-1960s-amid-trump-tariffs-trade-tensions].