The June 2025 edition of the Global Economic Prospects, the World Bank’s flagship report, warns that global economic growth will remain sluggish at 2.3% in 2025—well below the pre-pandemic average of 3.1%. This prolonged slowdown, driven by high interest rates, weak trade, and rising geopolitical tensions, poses serious risks for poverty reduction and development. Developing economies are projected to grow just 3.9%, with many facing heavy debt burdens and limited fiscal space. Although inflation is easing, growth remains too weak to support broad-based improvements in living standards. The report urges coordinated global action, stronger investment in human capital and infrastructure, and reforms to unlock productivity and resilience, particularly in emerging and low-income economies.
