World Bank Cuts Global Economic Growth Forecast: Slowdown in the US, China, and Europe
June 10, 2025, Washington — The World Bank has significantly lowered the economic growth expectations for most countries and regions in its latest release of the 'Global Economic Outlook', indicating that the global economic recovery faces ongoing pressures and structural challenges.
According to the report, nearly 70% of countries and regions have had their GDP growth forecasts downgraded, with the outlook for several major economies significantly slowing:
• United States: The GDP growth forecast for 2025 has been cut to 1.4%, primarily influenced by high interest rates, slowing consumption, and limited fiscal space.
• China: Expected growth for 2025 is 4.5%, further declining to 4.0% in 2026, reflecting the ongoing weakness in the real estate market and pressures on external demand.
• Europe: The economic growth expectation for 2025 is only 0.7%, with high energy costs and weak manufacturing being the main reasons.
The World Bank points out that the global economy is entering a new normal of 'low growth, low trade, and low investment', especially as developing countries face the dual challenges of increasing debt burdens and capital outflows. The report warns that if major central banks maintain a prolonged high interest rate cycle, it could lead to a new round of financial instability.
Nevertheless, the report also mentions that some emerging markets (such as India and Indonesia) demonstrate relative resilience, indicating a highly differentiated trend in the global economy.
