The World Bank has revised its global economic growth projections downward, attributing the change to escalating trade tensions between major economies. The institution’s latest forecast anticipates a 3.1% expansion for both 2018 and 2019, a marginal adjustment from earlier predictions.

According to the World Bank’s analysis, the rise in trade disputes and the implementation of protectionist policies are poised to exert a dampening effect on economic activity across the globe. These measures are expected to disrupt supply chains, increase costs for businesses, and ultimately reduce overall trade volumes.

Specific concerns highlighted in the report include:

• The potential for further escalation of trade conflicts between the United States and China.
• The impact of tariffs and other trade barriers on global value chains.
• The uncertainty surrounding future trade policy decisions.

While the World Bank acknowledges that some countries may experience short-term benefits from trade diversion, the overall impact on the global economy is expected to be negative. The institution urges policymakers to pursue multilateral solutions to trade disputes and to avoid protectionist measures that could harm global growth.