WASHINGTON ¨C The World Bank on Tuesday slashed its global growth forecast for 2025 by 0.4 percentage point to 2.3%, saying that higher tariffs and heightened uncertainty posed a ¡°significant headwind¡± for nearly all economies.
In its twice-yearly Global Economic Prospects report, the bank lowered its forecasts for nearly 70% of all economies ¡ª including the United States, China and Europe, as well as six emerging market regions ¡ª from the levels it projected just six months ago before U.S. President Donald Trump took office.
Trump has upended global trade with a series of on-again, off-again tariff hikes that have increased the effective U.S. tariff rate from below 3% to the mid-teens ¡ª its highest level in almost a century ¡ª and triggered retaliation by China and other countries.
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