World Bank Expects Global Economic Slowdown Due to Trade Disputes

“Just six months ago, it seemed that a ‘soft landing’ was expected for the global economy, which had stabilized after an extraordinary series of both natural and man-made disasters over the past few years. But that moment has vanished,”

This is reported by AgroReview

According to leading economists at the World Bank, the global economy is once again entering a phase of uncertainty due to the escalation of international trade disputes and the introduction of new tariffs. This has intensified market turbulence and could lead to a significant decline in living standards in many countries if urgent measures are not taken to stabilize the situation.

Global GDP to Grow at Slowest Pace in a Decade

According to the analysis, by 2025, global shocks will already reduce the growth rate of world GDP by nearly 0.5%, bringing it down to 2.3%. This is the lowest figure in 17 years, excluding periods of global recessions. It is projected that this trend will continue: by 2027, the average annual growth of global GDP will be only 2.5%. This will mark the slowest economic growth in any decade since the 1960s.

Poorest Countries at Risk of Stagnation

The economic slowdown will be particularly acutely felt by the poorest countries and emerging markets, which risk losing their development momentum. Economists emphasize that to avoid further deterioration, it is essential to urgently restore normal trade relations, bring order to public finances, and boost job creation, especially in the context of a global demographic shift.