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World Bank cuts global, US GDP growth forecasts

“Only six months ago, a ‘soft landing’ appeared to be in sight: the global economy was stabilizing after an extraordinary string of calamities both natural and man-made over the past few years. That moment has passed. The world economy today is once more running into turbulence. Without a swift course correction, the harm to living standards could be deep. International discord – about trade, in particular – has upended many of the policy certainties that helped shrink extreme poverty and expand prosperity after the end of World War II. This year alone, our forecasts indicate the upheaval will slice nearly half a percentage point off the global GDP growth rate that had been expected at the start of the year, cutting it to 2.3 percent. That’s the weakest performance in 17 years, outside of outright global recessions. By 2027, global GDP growth is expected to average just 2.5 percent in the 2020s – the slowest pace of any decade since the 1960s,” says the foreword to the World Bank’s twice-yearly growth forecast, not naming names or anything, buuuuuuut…

Still not naming names but getting closer, the actual report forecasts US GDP growth at 1.4 percent in 2025, downgraded from January’s forecast of 2.3 percent and half of 2024’s 2.8 percent growth.

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