Revised Article:
Global Economy Takes a Hit: World Bank Slashes Forecast Amid Mounting Uncertainties
Reduced Thailand's Economic Expansion Prediction for 2025 by World Bank: From 2.9% to 1.8%, Global Growth Estimated at 2.3%
The World Bank has dealt a heavy blow to the global economy, predicting a dismal growth of 2.3% in 2025. This represents the slowest pace since 2008, excluding the global recession. Here's the skinny on what's causing the economic downturn and how it impacts Thailand, among other nations.
The Thai economy's growth is set to take a hit in 2025 due to a variety of factors, according to the World Bank's Global Economic Prospects report. Global uncertainties — including trade disputes and natural disasters like earthquakes — are causing economic activities to stumble. As a result, the World Bank has slashed Thailand's GDP growth forecast to a meager 1.8%.
The global economy doesn't look much better. The World Bank has downgraded its global growth forecast for 2025 to 2.3% as well, a significant drop from its earlier prediction of 2.7%. Not only trade disputes but also policy inconsistencies across nations have cultivated an atmosphere of uncertainty, deterring investments and hampering growth [1][5].
Developing economies are particularly feeling the pinch as they battle increased debt levels, limited fiscal space, and slow growth. This, in turn, is compounding the overall global economic slowdown [1][5].
So, what's fueling the global slowdown?
- Trade Tensions: Countries have been slapping higher tariffs on imports, creating hostilities and reducing trade volumes, thus weakening global growth [1][5].
- Policy Uncertainty: Ongoing policy changes and economic instability are adding to the mess, setting off investment alarms and preventing growth from flourishing [1][5].
- Developing Economies' Struggles: Developing economies are grappling with high debt loads and limited financial room for maneuver, exacerbating the worldwide economic decline [1][5].
If the ongoing trade disputes can be resolved with agreements that cut tariffs by half by the end of May 2025, the world economy might rebound slightly, with approximately 0.2% stronger growth on average during 2025 and 2026 [5]. The U.S. and its trading partners are currently negotiating, with crucial talks scheduled between the U.S. and China, as well as between the European Union and the U.S., ahead of the expiration of the trade truce in less than a month.
In conclusion, the global economy is facing challenging times, with significant repercussions for wealth creation, poverty reduction, and sustainable growth. It's a murky landscape with complex issues that require careful navigation and concerted efforts to set things right.
- TAGS
- World Bank
- GDP
- economy
- United States
- Tariffs
- Developing Economies
- Global Economic Prospects
- Breaking News
- The global economy's slow growth in 2025, predicted by the World Bank, is largely influenced by the escalating trade tensions among nations, resulting in higher tariffs that reduce trade volumes and weaken global economic growth.
- Developing economies are disproportionately affected by the global economic slowdown, as they battle increased debt levels, limited fiscal space, and slow growth, compounding the overall economic downturn.
- In response to the global economic slump, some of the world's major economies, like the United States, are engaging in crucial negotiations to resolve trade disputes, with the goal of reducing tariffs by half by the end of May 2025. This potential resolution could lead to a slight rebound in the world economy, with improved growth rates for the years 2025 and 2026.
