The World Bank said the U.S. economy in 2025 will grow 1.4 percent, 0.9 percentage points slower than its January forecast. It also called for all nations to reduce tariffs.

In the postwar period, it pursued a Soviet-style model of a centrally planned economy in which the government controlled all production, trade and prices. The collectivisation of farming, its primary sector, resulted in abject poverty, making Vietnam the poorest country in the world in the early 1980s.

The World Bank says tariffs will hurt global growth, estimating that the trade war will shave almost half a percentage point from world GDP growth this year.

Global economic growth is on track for its weakest decade since the 1960s, according to a new analysis by the World Bank, which cites President Donald Trump’s trade war as a major factor weighing on economies worldwide.

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

The number of Chinese companies on the Global 2000 has dropped from a peak of 351 in 2022 to 317 this year. Sluggish domestic consumption and the prospect of a U.S.-China trade war is already taking its toll among Chinese companies.

According to the World Bank, global economic growth is expected to reach 2.3% this year, down from the 2.7% forecast in January. Growth in the 2020s is on track to be the weakest since the 1960s.

The World Bank reduced its growth forecast for the global and U.S. economy to the weakest pace for global output since 2008, citing trade war disruptions sparked by President Trump.

China returns to trade talks with the U.S. holding, from its view, a strong hand: Its economy is bearing up better than expected. And it has an ace card: rare earths.