The World Bank has cautioned that the global economy is experiencing a slowdown, primarily due to escalating trade disputes and persistent policy uncertainty. These factors are creating headwinds for economic expansion worldwide.

Key Factors Contributing to Slowdown

• Trade Tensions: Ongoing trade disputes between major economies are disrupting global supply chains and dampening investment.
• Policy Uncertainty: Unclear policy directions in various countries are making businesses hesitant to invest and expand.
• Financial Market Volatility: Increased volatility in financial markets is adding to the overall economic uncertainty.

Growth Forecasts

The World Bank projects a deceleration in global economic growth over the next few years. This forecast reflects the expectation that the challenges outlined above will continue to weigh on economic activity.

Regional Impacts

The slowdown is expected to affect various regions differently. Emerging markets and developing economies are particularly vulnerable to the negative impacts of trade tensions and financial market volatility.

Recommendations

The World Bank urges policymakers to address the underlying causes of the slowdown by promoting trade cooperation, reducing policy uncertainty, and strengthening financial stability.