World Economy to Grow Slower in 2025, Trade Problems are Main Worry

Washington D.C., USA – The World Bank says that the world economy will grow slower in 2025. It expects growth to be 5.8 percent. This is after a time of stronger growth. This number is still growth, but it is less than before the pandemic. This means harder times are expected next year. The report says that more trade barriers and unclear global rules are the biggest risks.

The expected slower growth is due to many things. Prices are still high in some areas. Banks are making it harder to borrow money. There are also ongoing problems between countries. While many countries have recovered well after the pandemic, these problems together are expected to slow down how fast the world economy grows.

The World Bank says that the world economy is becoming more split. Countries are trying to protect their own businesses more. There are also more arguments about trade. These “stronger trade barriers” can hurt how goods move around the world. They can make things more expensive for businesses. This can slow down global trade, which helps the world economy grow.

Also, “unclear global rules” add more risk. This means changes in rules by different countries and international groups that are hard to predict. These can be about money, banking, or trade. Such uncertainty makes it hard for businesses to plan and invest for the long term. This can make businesses less confident and cause them to delay important spending.

Because of this, the World Bank is asking leaders to focus on making things stable and clear. They also want countries to work together. Solving trade arguments and working together internationally will be key. Also, making big changes to improve how economies work will help. These steps are important to handle the slower economic growth and reduce risks. These risks could hurt the world’s wealth even more.