Economic Buzz: Global growth in 2025 expected to register its weakest pace since 2008, Says World Bank

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 noted in its latest global economic prospects report. Growth is expected to weaken to 2.3 percent in 2025, substantially weaker than previously projected amid the impact of higher trade barriers, elevated uncertainty, increased financial volatility, and weakened confidence. Thereafter, growth is forecast to firm to about 2.5 percent over 2026-27, as trade flows continue adjusting to higher tariffs such that global trade edges up, while policy uncertainty moderates from record-high levels. The downgrade to global growth this year is principally driven by advanced economies. This would mark the slowest rate of global growth since 2008, aside from outright global recessions, the Bank said.

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