International organizations are lowering their forecasts for global economic growth, citing escalating trade tensions and policy uncertainties as primary drivers. The revisions reflect concerns that ongoing trade disputes, particularly those involving major economies, are dampening economic activity worldwide.

Key Factors Influencing the Downgrade

• Trade Tensions: The imposition of tariffs and retaliatory measures between countries is disrupting global supply chains and increasing business uncertainty.
• Policy Uncertainty: Unclear policy directions and potential shifts in economic strategies are creating hesitancy among investors and businesses.
• Geopolitical Risks: Various geopolitical factors are contributing to instability and impacting economic confidence.

Regional Impacts

The revised outlook suggests a slowdown in growth across multiple regions, with some countries being more vulnerable than others. Emerging markets and developing economies are particularly susceptible to the negative effects of trade disputes and capital flow volatility.

Recommendations

Experts are urging policymakers to address trade tensions through dialogue and negotiation. They also emphasize the importance of implementing sound macroeconomic policies to support sustainable growth and mitigate risks.