Marketplace Morning Report Global growth set for decline, as ballooning government debts take hold
Jun 3, 2025
The global economy is showing signs of slowing growth, with projections dipping to 2.9%. Trade tensions, particularly between the U.S. and China, are heightening uncertainty. Major companies are adapting to new tariffs, while stock markets face volatility. There's a call for greater trade unity and fiscal discipline to manage rising government debts and bolster confidence. Meanwhile, innovative strategies from Tesla in India and the legal complexities surrounding a high-profile football club sale add layers to the economic narrative.
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Global Growth Hits Headwinds
- Global economic growth is forecast to slow to about 2.9% amid rising trade tensions and inflation.
- Protectionism and ballooning government debts are key factors weakening the worldwide economy.
Avoid Trade Fragmentation
- Governments should avoid further trade fragmentation to support the global economy.
- Reviving investments, which have fallen 22% since the financial crisis, should be a top priority.
Historic Rise In Public Debt
- Global public debt levels are the highest in about 80 years.
- Both rich and poor countries face increasing expenditure pressures amid rising debts.