World Bank Warns of Weakest Global Economic Growth Since 1960s

The World Bank has issued a stark warning that the global economy is on course for its weakest growth in over six decades, primarily due to escalating trade tensions stemming from U.S. tariffs, particularly those enacted during President Donald Trump’s administration. According to the institution's latest report released on June 10, 2025, global economic growth is projected to average only 2.3% for the first seven years of the 2020s, marking the lowest rate since the 1960s, excluding the years of significant recession in 2008 and 2020.

In its analysis, the World Bank attributed the slowdown to a myriad of factors, most notably the trade war initiated by Trump, which has seen tariffs imposed on several major trading partners. The report highlighted that while a complete global recession is not anticipated, the uncertainties and complexities introduced by these tariffs are expected to broadly hinder growth across multiple economies worldwide.

"The sharp increase in tariffs and the ensuing uncertainty are contributing to a broad-based growth slowdown and deteriorating prospects in most of the world’s economies," stated the World Bank. This observation is corroborated by the findings from Fitch Ratings, which downgraded its outlook for global government bonds from neutral to deteriorating in light of trade policy uncertainties affecting global trade volumes and investment.

As a result of these trade tensions, the World Bank has cut its growth forecast for the global GDP from 2.7% to 2.3%, as it anticipates that tariffs will remain at their current levels for the foreseeable future. This adjustment reflects a significant decline in growth expectations, particularly affecting developing economies that are already grappling with rising government debt levels and other long-standing economic challenges.

The ongoing trade negotiations, particularly between the United States and China, are critical in determining the future economic landscape. Recent talks in London saw both nations attempting to stabilize relations, but the unpredictability of tariff implementations continues to impact businesses and consumers alike, creating an environment of caution and restraint.

Experts, such as Dr. Emily Carver, an economist at the Brookings Institution, emphasize that the trade war's repercussions are widespread. She noted, "The implications of these tariffs stretch beyond immediate economic growth; they also affect global supply chains and consumer prices, leading to longer-term economic instability."

Moreover, the World Bank's report indicates that nearly 70% of economies worldwide are experiencing downward revisions in their growth forecasts due to these trade tensions. This trend suggests a pervasive crisis that transcends national borders, impacting developed and developing nations alike.

The implications of such stagnation are far-reaching, affecting not only economic indicators but also societal aspects such as employment rates and public welfare. As the global economy struggles to regain its footing, the focus shifts to how nations will navigate the complexities of international trade in a post-pandemic world.

In conclusion, as the global economy faces one of its most challenging decades since the 1960s, the pivotal role of international trade policies and their repercussions on economic growth cannot be overstated. Policymakers are urged to adopt strategies that foster cooperation and mitigate the adverse effects of trade wars to pave the way for a more stable and prosperous economic future.