Global Economic Growth Could Slip to a Three‐Decade Low

The World Bank warns that without significant reforms—such as boosting labor supply, productivity, and investment—global economic potential could fall to an annual rate of 2.2% by 2030, marking a potential 'lost decade' for the world economy. Ayhan Kose, the director of the World Bank’s forecasting group, emphasized that this slowdown might deepen considerably if another global financial crisis occurs.

Recent supplemental reports, including a January 16, 2025 press release from the World Bank and analyses from Reuters, highlight mounting concerns over policy uncertainty and trade disruptions, such as proposed U.S. tariffs. Although various institutions like the IMF and OECD provide slightly different near-term growth projections for 2025 and 2026, the underlying message remains consistent: robust structural reforms are critical to ward off a more severe downturn in global growth prospects.