{"id":152911,"date":"2025-06-10T17:32:06","date_gmt":"2025-06-10T17:32:06","guid":{"rendered":"https:\/\/quixnet.net\/wpinstance\/citing-trade-wars-the-world-bank-sharply-downgrades-global-economic-growth-forecast-to-2-3-nbc-news\/"},"modified":"2025-06-10T17:32:06","modified_gmt":"2025-06-10T17:32:06","slug":"citing-trade-wars-the-world-bank-sharply-downgrades-global-economic-growth-forecast-to-2-3-nbc-news","status":"publish","type":"post","link":"https:\/\/quixnet.net\/wpinstance\/citing-trade-wars-the-world-bank-sharply-downgrades-global-economic-growth-forecast-to-2-3-nbc-news\/","title":{"rendered":"Citing trade wars, the World Bank sharply downgrades global economic growth forecast to 2.3% – NBC News"},"content":{"rendered":"

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WASHINGTON \u2014 President Donald Trump\u2019s trade wars<\/a> are expected to slash economic growth this year in the United States and around the world, the World Bank forecast Tuesday.
Citing \u201ca substantial rise in trade barriers\u2019\u2019 but without mentioning Trump by name, the 189-country lender predicted that the U.S. economy \u2014 the world\u2019s largest \u2014 would grow half as fast (1.4%) this year as it did in 2024 (2.8%)<\/a>. That marked a downgrade from the 2.3% U.S. growth it had forecast back for 2025 back in January.
The bank also lopped 0.4 percentage points off its forecast for global growth this year. It now expects the world economy to expand just 2.3% in 2025, down from 2.8% in 2024.
In a forward to the latest version of the twice-yearly Global Economic Prospects report, World Bank chief economist Indermit Gill wrote that the global economy has missed its chance for the \u201csoft landing\u2019\u2019 \u2014 slowing enough to tame inflation without generating serious pain \u2014 it appeared headed for just six months ago. \u201cThe world economy today is once more running into turbulence,\u201d Gill wrote. \u201cWithout a swift course correction, the harm to living standards could be deep.\u2019\u2019
America\u2019s economic prospects have been clouded by Trump\u2019s erratic and aggressive trade policies, including 10% taxes \u2014 tariffs \u2014 on imports from almost every country in the world. These levies drive up costs in the U.S. and invite retaliation from other countries.
The Chinese economy is forecast to see growth slow from 5% in 2024 to 4.5% this year and 4% next. The world\u2019s second-largest economy has been hobbled by the tariffs that Trump has imposed on its exports, by the collapse of its real estate market and by an aging workforce.
The World Bank expects the 20 European countries that share the euro currency to collectively grow just 0.7% this year, down from an already lackluster 0.9% in 2024. Trump\u2019s tariffs are expected to hurt European exports. And the unpredictable way he rolls them out \u2014 announcing them, suspending them, coming up with new ones \u2014 has created uncertainty that discourages business investment.
India is once again expected to the be world\u2019s fastest-growing major economy, expanding at a 6.3% clip this year. But that\u2019s down from 6.5% in 2024 and from the 6.7% the bank had forecast for 2025 in January. In Japan, economic growth is expected to accelerate this year \u2014 but only from 0.2% in 2024 to a sluggish 0.7% this year, well short of the 1.2% the World Bank had forecast in January.
The World Bank seeks to reduce poverty and boost living standards by providing grants and low-rate loans to poor economies.
Another multinational organization that seeks to promote global prosperity \u2014 the Organization for Economic Cooperation and Development \u2014 last week downgraded its forecast<\/a> for the U.S. and global economies.
The Associated Press
© 2025 NBCUniversal Media, LLC<\/p>\n

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ProfileSectionsLocaltvFeaturedMore From NBCFollow NBC News news AlertsThere are no new alerts at this timeWASHINGTON \u2014 President Donald Trump\u2019s trade wars are expected to slash economic growth this year in the United States and around the world, the World Bank forecast Tuesday.Citing \u201ca substantial rise in trade barriers\u2019\u2019 but without mentioning Trump by name, the 189-country […]<\/p>\n","protected":false},"author":1,"featured_media":152912,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[10],"tags":[],"class_list":["post-152911","post","type-post","status-publish","format-standard","has-post-thumbnail","category-world","entry"],"_links":{"self":[{"href":"https:\/\/quixnet.net\/wpinstance\/wp-json\/wp\/v2\/posts\/152911","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quixnet.net\/wpinstance\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quixnet.net\/wpinstance\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quixnet.net\/wpinstance\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quixnet.net\/wpinstance\/wp-json\/wp\/v2\/comments?post=152911"}],"version-history":[{"count":0,"href":"https:\/\/quixnet.net\/wpinstance\/wp-json\/wp\/v2\/posts\/152911\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quixnet.net\/wpinstance\/wp-json\/wp\/v2\/media\/152912"}],"wp:attachment":[{"href":"https:\/\/quixnet.net\/wpinstance\/wp-json\/wp\/v2\/media?parent=152911"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quixnet.net\/wpinstance\/wp-json\/wp\/v2\/categories?post=152911"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quixnet.net\/wpinstance\/wp-json\/wp\/v2\/tags?post=152911"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}