US Tariffs Elected to Reduce Global Growth Outlook Amid Warning from World Bank

Washington D.C., USA (Reuters) - The World Bank has cautioned that US tariffs could drastically reduce the global growth outlook, warning of an escalating trade war that would exacerbate economic uncertainty.

In a statement made on Tuesday, the news hit many analysts hard and economists, "Wealthy countries must take more decisive action to rebalance their economies and invest in human and physical capital – otherwise we risk another 'lost decade'. The next 25 years will be a tougher slog for developing economies than the last 25", said Indermit Gill, the World Bank Group's chief economist and senior vice president for development economics.

According to the International Bank for Reconstruction and Development (IBRD) group, US tariffs are projected to reduce the global growth outlook, highlighting ongoing trade tension between the United States and China as a main point of contention in recent months.

Experts believe that escalating tensions will undermine economic stability across the globe, further complicating the uncertain prospects for key emerging markets.