The World Bank has revised its global growth forecast for 2025, lowering it by 0.4 percentage points. According to its latest report, Global Economic Prospects, published on Tuesday (June 10), the global economy is now expected to grow by just 2.3 percent this year.

The report highlights that increasing tariffs and rising uncertainty have created significant obstacles for almost all economies. As a result, economic growth may slow in about 70 percent of countries worldwide, including major players like the United States, China, European nations, and six key emerging regions.

Although the World Bank has not explicitly predicted a recession, it warns that the global economy is heading toward one of its weakest performances since the 2008 financial crisis, excluding periods of official recession. By 2027, the global GDP growth rate is expected to average only 2.5 percent, marking the slowest growth over a decade since the 1960s.

The report attributes much of this slowdown to trade disruptions triggered by the tariff hikes introduced during Donald Trump’s presidency. It notes that the U.S. effective tariff rate surged from 3 percent to double digits — the highest level in nearly a century. In response, countries like China and others have implemented retaliatory tariffs.

The World Bank specifically cites the unpredictability of Trump’s trade policies as a key factor behind the downgraded growth projections. However, U.S. officials maintain that the negative effects of tariff increases can be offset through higher investments and yet-to-be-approved tax incentives.

Meanwhile, the World Bank has kept its economic growth forecast for Bangladesh unchanged at 3.3 percent for the current fiscal year, consistent with its April projection. In contrast, Bangladesh’s national statistical agency, BBS, has recently forecasted a slightly higher growth rate of 3.97 percent for the same period.