People are less worried that President Donald Trump's tariff campaign will push up prices, though American consumers remain pessimistic by historical standards.

The World Bank has significantly downgraded its global economic outlook for the year ahead. The organization blamed trade disruption caused by President Donald Trump’s ongoing tariff war as a major factor in what looks to be the weakest expansion since the 2008 financial crisis.

The dampened outlook for the U.S. mirrors a slowdown expected for the global economy, the OECD said, predicting global economic growth to fall from 3.4% in 2024 to 2.9% in 2025.

Key Takeaways The global economy could grow less this year than previously projected, the World Bank said Tuesday.The World Bank cited trade tensions and policy uncertainty related to tariffs as factors driving its lowered outlook.

President Donald Trump’s turbulent tariffs are projected to cause a sharper slowdown in economic growth in the U.S. than expected.

The world’s largest economy is expected to grow by just 1.4% in 2025, a sharp deceleration from the 2.8% expansion recorded in 2024.

At Old Dominion University's annual Midyear Economic Forecast, local economists raised concerns about increasing tariffs, federal job cuts and consumer anxiety.

U.S. economic growth is likely to "slow markedly" this year and next, due to tariffs and uncertainty under the Trump administration.

The OECD's forecast projects a slowdown in U.S. economic growth due to tariffs, with GDP growth at 1.5% in 2026 and inflation reaching 3.9% by the end of 2025.

The OECD said President Donald Trump's tariffs are hitting economic growth in the US and globally too, and warned of consequences for jobs and incomes.