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World Bank Cuts 2025 Growth Forecast to 2.3%

6/12/2025

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Summary

World Bank Downgrades Growth

The World Bank has slashed its global growth forecast for 2025 to a mere 2.3%, marking the lowest prediction since 2008. Escalating trade tensions and U.S. tariffs are fueling this decline, signaling a troubling decade ahead—the weakest for global growth since the 1960s—especially for developing economies grappling with severe challenges.

Summary

India's Economic Surge

India is set to shine as the fastest-growing major economy, with a robust 6.3% GDP growth forecast for FY 2025-26, fueled by a thriving services sector and a rebound in agriculture. Meanwhile, global growth is anticipated to decelerate to 2.3% in 2025, casting a shadow over nearly 70% of countries, particularly in developing regions outside Asia.

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World Bank Downgrades Growth

The World Bank has slashed its global growth forecast for 2025 to a mere 2.3%, marking the lowest prediction since 2008. Escalating trade tensions and U.S. tariffs are fueling this decline, signaling a troubling decade ahead—the weakest for global growth since the 1960s—especially for developing economies grappling with severe challenges.

1 / 2