Hey everyone! The latest World Bank report has dropped some major news – global economic growth forecasts have been trimmed due to rising trade tensions and policy uncertainty. The Global Economic Prospects report now sets the 2025 growth rate at 2.3% (down from 2.7%), and 2026 at 2.4% (previously 2.7%).
Advanced economies are feeling the pinch too. Forecasts now suggest an expansion of just 1.2%, compared to earlier estimates of 1.7%. In the United States, the 2025 growth projection is at 1.4%, which is notably lower than the 2.8% recorded in 2024. Meanwhile, growth forecasts for the Euro Area and Japan have been revised down to 0.7% each. Interestingly, China's growth forecasts remain unchanged, even as other regions face uncertainty.
World Bank chief economist Indermit Gill warned, "Without a swift course correction, the harm to living standards could be deep." He also remarked that outside of Asia, many developing economies risk turning into a "development-free zone." This highlights the urgent need for clear global trade policies to stabilize the financial outlook. For young professionals and tech enthusiasts in South and Southeast Asia, these numbers underline how global economic shifts can ripple into everything from tech startups to everyday job opportunities. ⚠️
Looking ahead, a tepid recovery is expected in 2026 and 2027, with global output likely to remain below earlier projections. Stay informed and keep an eye on these trends – our dynamic region thrives on understanding both local and global shifts. Let’s hope for some positive changes soon! 😊
Reference(s):
World Bank trims global growth outlook on trade barriers, uncertainty
cgtn.com
