World Bank cuts growth forecast on trade tumult

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WASHINGTON: The World Bank on Tuesday reduced its global growth forecast, citing trade tensions and consequently the uncertainty of the policy, as US President Donald Trump’s broader revenue stressed and weighed on economic ideas.

The bank, in its latest economic possibility, reduced its projection by 2.3 % for global GDP growth, which is less than 2.7 % expected in January, the latest in terms of decrease by international organizations.

He added, “This is the weakest performance for the World Bank’s Group Chief Economist Undermat Gul. For this year and for this year,” this is the weakest performance. “

Gul warned, “Without a fast course correction, the loss of quality of life could be deepen.

Glovers estimates have emerged when Trump imposed a 10 % tariff on the import of almost all US trade partners in April – and high rates on dozens of economies, since which he has suspended until early July.

He also continued to grow tight -tet with China, though the two countries have stopped their trade war and temporarily reduced these amazing duties. But lasting war is uncertain.

American slowdown

It is expected that the US economy is expected to increase by 1.4 percent this year, which is a faster slowdown for the world’s largest economy with a 2.8 percent extension in 2024.

The report added that if US revenue on imports increased by 10 percent points, which triggered proportional retaliation, international trade and financial markets could reduce global growth by 0.5 percent this year. Although the World Bank’s overall growth proportion was proportional to advanced economies, the bank warned that there are difficult conditions for less wealthy countries.

Gul said that commodity prices will be suppressed in 2025 and 2026, Gul said. This means that about 60 % of the emerging markets and developing economies – which are commodities exporters – have to deal with “low commodity prices and highly dirty commodity markets.”

By 2027, while the GDP per capita of high -income economies almost approximately where pre -forecasts were predicted, the same level for developing economies would be six percent.

“Apart from China, these economies can take almost two decades to restore the economic losses of the 2020s,” Gul warned. He said that overall, although the expectations of GDP growth have been changed down, inflation has been amended. The bank also urged policy makers to overcome inflation risks.

Despite the challenges of trade policy, however, Gul argued that “if the right policy measures are taken, this problem can be made to resolve it with long -term loss”. He called for the “difference between tariffs and non -tariff measures in the United States” to be rapidly reduced by other countries starting with the group of 20, which combines the world’s largest economies.

“Every country should treat other countries the same,” he added. This month, the Paris -based Organization for Economic Cooperation and Development also reduced its 2025 global growth forecast from 3.9 percent to 2.9 percent, and warned that Trump’s revenue would prevent the global economy.

This happened after that when the International Monetary Fund (IMF) also reduced its global development expectations for Trump’s Levies, which has decreased by 3.3 percent to 2.8 percent.