The World Bank has published a revised global GDP growth forecast for 2025, lowering it to 2.3%. This is the lowest figure in five years, excluding recession periods.
Global GDP Growth Outlook
The World Bank has adjusted its projections, reducing its growth expectations for the global economy to 2.3% for 2025. This figure is the lowest excluding major recessions like those in 2008 and 2020. This revised estimate affects approximately 70% of economies, highlighting concerns over rising trade barriers and policy uncertainty impacting growth dynamics.
U.S. Growth Forecasts
The growth forecast for the U.S. economy has also been revised downward to 1.4%, reflecting broader issues in international markets. A projected average growth rate of 2.5% for the 2020s marks this period as the slowest since the 1960s, with significant implications for market trends.
Crypto Market Reactions
The crypto community has shown varying responses to these news. Despite subdued economic indicators, long-term Bitcoin holders remain steadfast, maintaining stability amidst market volatility. Indermit Gill of the World Bank stated, "Outside of Asia, the developing world is becoming a development-free zone."
The World Bank's downgrade of growth forecasts underscores the effort to adapt to changing economic conditions. These shifts may exert pressure on investments in risky assets, including cryptocurrencies, but also open opportunities for strategic investment in the future.
