Along with a sharply downgraded projection for global output this year, it urged a “course correction” on trade to help preserve living standards.

The U.S. economy is likely to grow just 1.4% this year, half the rate recorded in 2024, as a result of President Trump's tariff policies, the World Bank said. + The new forecast compares to the 2.3% rate it had projected in January.

The global economy could grow less this year than previously projected, the World Bank said Tuesday, citing uncertainty over tariffs and ongoing trade disputes.