The World Bank has lowered its global economic growth forecast, citing ongoing trade disruptions, persistent inflation, and geopolitical tensions as major hurdles facing the world economy.
In its latest Global Economic Prospects report released on Tuesday, the institution revised its growth prediction for 2025 to 2.4%, down from a previous estimate of 3.0%.
The bank said the global economy was set for its "weakest run since 2008 outside of recessions."
The Global Economic Prospects report warns that inflation continues to be a significant challenge, especially for middle and low-income countries, where rising prices have eroded consumer purchasing power.
Central banks worldwide have maintained high-interest rates to combat inflation, leading to increased borrowing costs that curtail both investment and consumption.
Additionally, the World Bank pointed to trade tumult, exacerbated by geopolitical tensions, as a key factor in the slowed economic momentum.
Disruptions in supply chains and heightened energy prices have further strained global trade, with regions like Eastern Europe and the Middle East experiencing pronounced impacts.
The World Bank's report also calls for structural reforms, technological advancements, and infrastructure investments to support long-term economic stability.
