According to Xinhua News Agency, the World Bank released its latest "Global Economic Prospects" report on June 10, lowering its global economic growth forecast for 2025 from 2.7% to 2.3%, with nearly 70% of economies seeing a downward revision.
The World Bank stated that global economic growth is slowing due to trade barriers and an uncertain global policy environment. Compared to six months ago, when the economy appeared poised for a "soft landing," the global economy is once again experiencing turbulence. If course corrections are not made swiftly, living standards could be severely impacted.
The report predicts that developed economies will grow by 1.2% this year, a decrease of 0.5 percentage points from previous forecasts. Specifically, the U.S. economic growth rate has been significantly revised from 2.3% to 1.4%. The Eurozone and Japan's growth rates have been adjusted to 0.7%. Emerging markets and developing economies are projected to grow by 3.8% this year, which is 0.3 percentage points lower than earlier estimates.
Indermit Gill, Senior Vice President and Chief Economist of the World Bank, noted that the developing world outside of Asia is becoming a region without development. The World Bank also forecasts that global trade volume growth will be 1.8% and 2.4% for this year and next, respectively, which is 1.3 and 0.8 percentage points lower than January's predictions.
According to the World Bank report, the global economy is expected to see a weak rebound in 2026 and 2027. Progress in narrowing the per capita income gap between emerging markets and developed economies, as well as reducing extreme poverty, remains insufficient and largely depends on changes in global trade policies.
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