World Bank Cuts Global Growth Forecast

(MENAFN) On Tuesday, the World Bank revised its economic growth forecast for 2025, lowering it by 0.4 percentage points to 2.3 percent.

The adjustment was made in response to “a substantial rise in trade barriers.” If this projection holds, it would represent the slowest global economic growth rate since 2008.

According to the bank's Global Economic Prospects report, “Global growth is slowing due to a substantial rise in trade barriers and the pervasive effects of an uncertain global policy environment.”

The World Bank highlighted that the escalation in tariffs, coupled with the growing uncertainty in global policies, is a key factor behind a widespread deceleration in economic growth, negatively impacting the outlook for most countries around the world.

In particular, the forecast for U.S. economic growth was revised down from 2.3 percent to 1.4 percent for 2025.

Similarly, the growth estimate for the Eurozone was reduced by 0.3 percentage points to 0.7 percent for 2025. The outlook for the following year was also cut to 0.8 percent, and for 2027, it was lowered to 1 percent.

On the contrary, the economic growth projections for China remained unchanged, with an expected growth rate of 4.5 percent for this year and 4 percent for 2026.

Regarding Turkey, the World Bank updated its forecast, projecting a 3.1 percent growth for 2025, which is 0.5 percentage points higher than previous estimates.

Furthermore, Turkey's GDP is expected to grow by 3.6 percent next year and 4.2 percent in 2027.

Indermit Gill, Senior Vice President and Chief Economist at the World Bank Group, remarked that the possibility of a “soft landing” for the global economy has now passed.

He added that the world economy is facing renewed turbulence, signaling that challenging times lie ahead.

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