World Bank Cuts 2025 Global Growth Forecast to 2.3%

The World Bank has lowered its guess for how much the world economy will grow in 2025. It now thinks the global economy will grow by only 2.3% instead of the earlier guess of 2.6%. This change is because prices are still high, interest rates are up and there are problems around the world like wars and conflicts.

The world is still dealing with problems caused by the COVID-19 pandemic, broken supply chains and rising energy prices. To fight high prices many countries raised interest rates but this also made it harder for people and businesses to spend and invest money.

Poorer countries are expected to suffer more. They are finding it harder to borrow money, sell goods or pay back their debts. Richer countries are also growing slowly because people are being careful with their money and businesses are not producing as much.

The World Bank said that some places like South Asia and Sub-Saharan Africa are doing a bit better. But Europe and Central Asia are slowing down more. China is also expected to grow more slowly because of problems in its housing market and changes in its economy.

The World Bank is asking governments to take smart actions. They suggest building better roads and systems, changing bad policies and helping all people not just the rich. If governments don’t act now the world might face slow growth and more unfairness for a long time.

This new forecast is a warning. Leaders must fix current problems and make sure the future is better for everyone.