Global Growth Forecast Slashed: Weakest Expansion Since 2008 Outside Recessions
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The global economy is projected to grow just 2.3% in 2025, marking the slowest pace of expansion since 2008 outside of recessions, according to the World Bank’s latest Global Economic Prospects report.
Growth forecasts have been downgraded for nearly 70% of all economies, reflecting rising trade tensions, policy uncertainty, and sluggish investment. Developing countries are particularly affected, with average growth expected to slow to 3.8%, well below the 2010s average.
“Outside of Asia, the developing world is becoming a development-free zone,” said Indermit Gill, Chief Economist at the World Bank. Growth in low-income countries was also revised down to 5.3%, while global trade and investment continue to underperform, and debt levels climb.
The report stresses the need for new trade partnerships, pro-growth reforms, and stronger fiscal resilience, especially in emerging markets. It warns that without global cooperation, the post-pandemic recovery could remain stalled for years.
The global economy is projected to grow just 2.3% in 2025, marking the slowest pace of expansion since 2008 outside of recessions, according to the World Bank’s latest Global Economic Prospects report.
Growth forecasts have been downgraded for nearly 70% of all economies, reflecting rising trade tensions, policy uncertainty, and sluggish investment. Developing countries are particularly affected, with average growth expected to slow to 3.8%, well below the 2010s average.
“Outside of Asia, the developing world is becoming a development-free zone,” said Indermit Gill, Chief Economist at the World Bank. Growth in low-income countries was also revised down to 5.3%, while global trade and investment continue to underperform, and debt levels climb.
The report stresses the need for new trade partnerships, pro-growth reforms, and stronger fiscal resilience, especially in emerging markets. It warns that without global cooperation, the post-pandemic recovery could remain stalled for years.
