you are currently viewing::Global Economic Prospects-Global Economy Faces Trade-Related HeadwindsJune 14, 2025--The global economy is facing substantial headwinds, emanating largely from an increase in trade tensions and heightened global policy uncertainty. Global cooperation is needed to restore a more stable global trade environment and scale up support for vulnerable countries, including those in fragile and conflict situations. Domestic policy action is also critical to contain inflation risks and strengthen fiscal resilience. To unlock job creation and long-term growth, reforms should focus on raising institutional quality, attracting private investment, and strengthening human capital and labor markets. 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. Source: worldbank.org |
June 12, 2025--Greater debt transparency builds investor confidence, helps reduce borrowing costs, and strengthens debt sustainability-reducing the risk of shocks that can lead to a debt crisis
Public debt is projected to reach nearly 100 percent of global gross domestic product by the end of this decade, surpassing even pandemic-level highs.
June 10, 2025--2025 Growth Forecasts Cut for 70 Percent of Economies
Heightened trade tensions and policy uncertainty are expected to drive global growth down this year to its slowest pace since 2008 outside of outright global recessions, according to the World Bank's latest Global Economic Prospects report.
June 3, 2025--Stalled trade integration and rising tariffs are testing global economic resilience
For decades, world trade expanded rapidly as countries lowered tariffs and embraced globalization. Tariff rates fell dramatically worldwide, converging toward the low levels of the United States.
May 29, 2025--Fiscal Policy under mounting uncertainty means government budgets need resilience-particularly in countries whose economic weight makes them influence global trends
Global public debt could increase to 100 percent of global gross domestic product by the end of the decade if current trends continue, according to projections in our latest Fiscal Monitor.
May 28, 2025--A majority of surveyed economists see current US economic policy as having a lasting global impact, with 87% expecting it to delay strategic business decisions and heighten recession risks.
The growth outlook is divided, with weak prospects in North America, resilience in Asia-Pacific and cautious optimism in Europe.
May 21, 2025--Policymakers should broaden central clearing and monitor market-making, including by nonbank financial institutions, while dealers must continue to build resilience
The smooth functioning of government bond markets is important for the safety and soundness of broader capital markets, especially amid heightened financial market volatility.
May 21, 2025--Tokenization offers a new model of digital asset ownership that enhances transparency, efficiency and accessibility. This report analyses asset class use cases in issuance, securities financing and asset management, identifying factors that enable successful tokenization implementation.
May 13, 2025--UBS says its wealthy clients are pulling money out of U.S.-dollar assets and shifting their investments to gold- crypto, and Chinese markets over trade tensions and a volatile global economy.
May 13, 2025--Trackinsight, in partnership with J.P. Morgan Asset Management and S&P Dow Jones Indices, is proud to announce the launch of its sixth annual global ETF survey report: ETF Industry on Overdrive: Shifting Gears, Breaking New Barriers.
May 13, 2025--The World Federation of Exchanges' (WFE) new research finds that climate risks are positively priced into commodity options-meaning investors are rewarded for the climate-related risk they bear in holding these assets.