World Bank Predicts Several Countries Will Experience Economic Decline

The World Bank projects that a number of countries will face economic contraction or decline in 2025. This gloomy forecast was expressed in their latest routine report, the June 2025 edition of the Global Economic Prospects (GEP). 

The World Bank Group's Chief Economist, Indermit Gill, issued a warning regarding the global economic outlook. He stated that a number of countries are expected to experience serious economic weakness in 2025. 

"The economies of a number of countries will experience serious weakness this year as a result of the continued slowdown in global economic growth over the past three decades," said Indermit Gill, some time ago. 

It is known that in its latest report, the World Bank corrected world economic growth to 2.3 percent in 2025, down from the previous projection of 2.7 percent. The World Bank highlighted various factors that contributed to this negative outlook, including global geopolitical uncertainty, ongoing inflationary pressures in several regions, and the impact of monetary policy tightening carried out by central banks in various countries. 

According to Gill, complex global conditions, including ongoing geopolitical tensions, persistently high inflation in several countries, and the impact of tightening global monetary policy, are the main factors driving this slowdown. The economic slowdown in major countries can also have a domino effect on developing countries through trade and investment channels. The report details the growth projections, challenges, and opportunities faced by major regions. It is estimated that the East Asia and Pacific region may show relative resilience, although it continues to face a slowdown in the Chinese economy and global trade tensions. The World Bank estimates that Myanmar will contract by minus 2.5 percent in 2025. Vanuatu is also minus 1.8 percent from its previous estimate in 2025. 

Tag: Global Economic Prospects Indermit Gill World Bank