The World Bank reduced its expectation for the growth of the global economy this year to 2.3% from 2.8% expected at the beginning of the year, and it is the slowest pace since 2008 with the exclusion of the global recession periods, under the pressure of escalating trade tensions and political uncertainty.
“The developing countries – with the exception of Asia – are transforming into a region without development, and growth in developing economies has decreased sharply over 3 decades to less than 4% in the second decade of the 21st century,” said Endreett, a generation, the chief economist and vice president of development economics at the World Bank Group.
World Trade
According to the report, growth is expected to slow in approximately 60% of all developing economies this year, bringing its average to 3.8% in 2025 before gradually increasing to an average of 3.9% during the years 2026 and 2027, and this is less than a percentage of the average first decade of the 21st century.
It is expected that the economy of low -income countries will grow by 5.3% this year, a decrease of 0.4% from the beginning of the beginning of 2025.
The pressure increases on Inflation Global increases Customs tariffs The available jobs are declined، The average global inflation forecast remains at 2.9% in 2025, which is higher than the pre -Corona.
The bank expected that the slowdown in developing economies will disable its efforts to develop job opportunities, reduce extreme poverty and bridge the gaps of individual income with advanced economies.
The bank expected that the per capita income in developing economies would grow 2.9% in 2025, a decrease of 1.1% from the average between 2000 and 2019.
Global growth can recover at a faster pace than expected if the major economies can reduce trade tensions, which will reduce the state of political uncertainty and financial fluctuations.
Better expectations
The report indicated that if the current commercial conflicts are resolved by agreements that reduce customs definitions in half compared to their levels in late May, the global growth will be 0.2% higher on average during the years 2025 and 2026.
“The economies of emerging and developing markets have reaped the fruits of commercial integration, but it now finds itself in front of a global commercial conflict. The smartest way to respond is to redouble efforts in the field of integration with new partners, progress in support of growth, and enhance financial flexibility to confront the crisis, in light of the increasing commercial barriers and the increasing state of uncertainty,” said Ayan Kosi, Deputy Chief Economist and Director of the World Bank.
The report indicates that in the face of the increasing commercial barriers, developing economies should seek to liberalize its economy on a broader scale by seeking strategic commercial and investment partnerships with other economies and diversification of trade, including through regional agreements.
Due to the limited government resources and the increasing development needs, policy makers – according to the report – should focus on mobilizing local revenues and giving priority to financial spending for the most vulnerable families.