MNI: World Bank Sees Slowest Growth Since 1960s On Tariffs

The World Bank slashed this year's global growth forecast almost half a percentage point to 2.3% on the U.S.-led trade war and said economic expansion over the next two years is set to be the weakest since the 1960s. 

This year's growth would be the slowest since 2008 outside of an outside recession, which is not expected now, according to the development institution's report Tuesday. Growth estimates are being cut across 70% of nations.

"If today’s trade disputes were resolved with agreements that halve tariffs relative to their levels in late May, global growth would be 0.2 percentage point stronger on average over the course of 2025 and 2026," the report said. “Emerging-market and developing economies reaped the rewards of trade integration but now find themselves on the frontlines of a global trade conflict,” said M. Ayhan Kose, the World Bank’s Deputy Chief Economist, in a press release. (See MNI INTERVIEW:Tariffs Freeze Fed, Court Global Recession-Fatas)