### 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 0.4 percentage points to **2.3%**, marking the lowest growth rate since the 1960s. This adjustment is primarily attributed to the escalating trade tensions and policy uncertainties stemming from the tariffs imposed by U.S. President Donald Trump. The report indicates that nearly **70% of economies**, including major players like the U.S., China, and Europe, are expected to experience slower growth due to these trade wars and the resulting economic climate [https://www.straitstimes.com/world/united-states/world-bank-cuts-global-growth-forecast-as-trade-tensions-heighten-uncertainty][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]. ### Breakdown of the World Bank's Revised Forecast 1. **Global Growth Reduction**: The World Bank has cut its global growth forecast for 2025 to **2.3%**, down from **2.7%**. This reduction reflects the impact of increased trade barriers and heightened uncertainty in global markets [https://www.moneycontrol.com/world/world-bank-warns-us-growth-to-halve-as-trump-tariffs-hit-global-economy-article-13110284.html][https://www.apnews.com/article/world-economy-trump-tariffs-trade-growth-china-5a56591be1373cf34a5ba4bbe8ab6661]. 2. **Impact on Major Economies**: The U.S. growth forecast has been halved to **1.4%**, while the eurozone's growth estimate has been lowered to **0.7%**. In contrast, China's growth forecast remains stable at **4.5%** for 2025 [https://www.reuters.com/world/china/world-bank-slashes-global-growth-forecast-trade-tensions-bite-2025-06-10][https://www.nation.com.pk/10-Jun-2025/world-bank-cuts-global-economic-growth-forecast-due-to-increased-trade-tension]. 3. **Economic Uncertainty**: The World Bank's chief economist, Indermit Gill, emphasized that the current global economic environment is marked by significant turbulence, with trade wars undermining the policy certainties that have historically supported economic growth and poverty reduction [https://www.newindianexpress.com/business/2025/Jun/10/world-bank-cuts-growth-forecast-fearing-further-trade-tumult-warns-of-deep-harm][https://www.devdiscourse.com/article/business/3453971-trade-wars-erode-economic-growth-a-global-forecast]. ### Supporting Data and Evidence - **Revised Growth Rates**: - **Global Growth**: 2.3% (down from 2.7%) - **U.S. Growth**: 1.4% (down from 2.3%) - **Eurozone Growth**: 0.7% (down from previous estimates) - **China Growth**: 4.5% (unchanged) [https://www.scmp.com/news/world/article/3313910/world-bank-warns-slowest-global-growth-1960s-amid-trump-tariffs-trade-tensions][https://www.afr.com/policy/economy/world-bank-slashes-global-growth-forecast-as-trade-tensions-bite-20250611-p5m6fx]. - **Historical Context**: This forecast represents the weakest global growth performance outside of outright recessions since 2008, highlighting the severity of the current economic challenges [https://www.irishtimes.com/business/2025/06/10/us-tariffs-will-result-in-shock-to-global-growth-but-not-recession-world-bank-says][https://www.thedailystar.net/business/global-economy/news/world-bank-slashes-global-growth-forecast-trade-tensions-bite-3914071]. ### Conclusion: Implications of the World Bank's Forecast The World Bank's latest report underscores a **critical juncture** for the global economy, with **trade tensions** and **policy uncertainties** posing significant challenges. The following points summarize the key findings: 1. **Global Growth Forecast**: Revised down to **2.3%**, the lowest since the 1960s. 2. **Major Economies Affected**: Significant reductions in growth forecasts for the U.S. and eurozone. 3. **Urgent Policy Action Needed**: The report calls for immediate measures to address rising inflation risks and stabilize economic conditions. The current economic landscape suggests that without effective policy interventions, the global economy may continue to face substantial headwinds, potentially leading to further declines in growth and increased economic instability [https://www.investing.com/news/economy-news/world-bank-slashes-global-growth-forecast-as-trade-tensions-bite-4089000][https://www.devdiscourse.com/article/international/3454303-world-bank-slashes-2025-global-growth-forecast-amid-rising-trade-tensions].