Global trade tensions and whipsawing policies are “contributing to a deterioration in prospects across most of the world’s economies,” according to a new World Bank forecast that doesn’t mince words.
In its Global Economic Prospects report, the financial institution projected global growth will slow to 2.3% this year, as a US-initiated trade war wreaks havoc worldwide. This is big if true, because 2.3% growth would be the slowest rate since 2008—and we all remember what happened around that time. The bank expected 2.7% growth in January, according to the New York Times. The World Bank further noted it expects a “tepid recovery” in 2026 and 2027.
“Global cooperation is needed to restore a more stable and transparent global trade environment and scale up support for vulnerable countries grappling with conflict, debt burdens, and climate change,” the bank noted in its report.
The World Bank forecast may be the least surprising thing you read all day. Any loyal reader of CFO Brew—or, really, anyone who isn’t outright ignoring *gestures wildly at everything*—would know there have been plenty of other anxiety-inducing indicators that came before it.
More than half of US-based companies that Allianz surveyed said they need to raise prices after President Donald Trump’s “Liberation Day” tariffs announcement. US manufacturing slowed for a third straight month in May, the Institute for Supply Management said recently. And consumer sentiment dropped nearly 30% from January to May, according to a University of Michigan survey.
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