The World Bank has released its 2025 global growth forecast. The key takeaway is that global growth is stabilizing as inflation nears target levels. Global trade recovered in 2024, driven largely by steady growth in the goods trade in emerging economies. Overall growth remains weak, however, hindering sustainable economic development. The World Bank attributes this to heightened political uncertainty, adverse trade policies and persistent inflation affecting both developed and developing economies.
Regional growth prospects vary significantly, shaped by specific geopolitical tensions and country-level challenges. For instance, ongoing uncertainties surrounding the Russia-Ukraine war, expanding trade restrictions and instability in the Middle East are weighing on production, trade flows and broader economic performance. The outlook for major economies such as the U.S., China and Russia remains subdued, partly due to weaker domestic demand.
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