World Bank lowers growth expectations: concerns about the global economy!

World Bank lowers growth expectations: concerns about the global economy!

In a recent assessment, the World Bank has lowered its economic forecasts for 2025. According to the new estimates, the global economy will grow by 2.3 percent, a decrease of 0.4 percentage points compared to previous forecasts. This news was transmitted on June 11, 2025 on the Deutschlandfunk program, where the main findings of this report were presented.

The World Bank has identified a significant decline in growth, particularly for the US economy. Instead of the previously expected 2.3 percent, economists now expect only 1.4 percent for 2025. This revision should be understood against the background of increasing trade barriers and general volatility on the financial markets.

Global growth prospects

The lowered forecasts affect around 70 percent of all economies worldwide, including major economies such as the USA, China and European countries. For the euro zone, growth will be reduced to 0.7 percent next year, instead of the previously forecast 1.0 percent. This development is also partly caused by higher US import tariffs, which are particularly affecting trade in the region.

In addition, growth of only 1.2 percent is forecast for the industrialized countries as a whole in 2025, which means a reduction of 0.5 percentage points. The forecasts indicate that average global gross domestic product (GDP) growth of just 2.5 percent is expected by 2027 - the lowest growth since the 1960s.

Reasons for the adjustments

The World Bank cites a variety of factors for these adjustments. These include not only rising trade barriers and high levels of uncertainty that are weighing on private consumption, trade and investments, but also an overall negative development that has been observed since January 2023. These aspects are reflected in a significant slowdown in economic growth.

Although there is no sign of an impending recession in the forecasts, the World Bank notes that expected growth is the weakest since the 2008 financial crisis, but outside an official recession period. This information illustrates the global challenges that the economy will face in the future.

For further details on the forecasts and the underlying factors, the reports can be found on Deutschlandfunk and ORF be consulted.