Global Growth Slows Amid Trade Tensions: What SIU Students Need to Know About Political Economy

The World Bank has revised its 2025 global growth forecast to 2.3%, pointing to growing trade barriers and intensifying tariff disputes between major economies. This represents the slowest global growth rate in a non-recession year since the 1960s, raising serious concerns about how political choices shape economic outcomes.

At Swiss International University (SIU)—with campuses in Zurich, Dubai, Bishkek, Luzern, Riga, and London—we see this not only as a signal of caution but as a critical learning opportunity.

Where Politics Meets the Economy

This economic deceleration stems not from a typical downturn, but from politically driven trade conflicts. Tariffs affecting hundreds of billions in global commerce are prompting companies to delay investment, slow hiring, and reconsider cross-border strategies. Political actions—once distant from market dynamics—are now directly steering economic conditions.

Leading economists emphasize that today’s fiscal choices must tread a narrow path. While stimulus may help, excessive spending risks inflation or debt instability, especially in developing nations.

At SIU, we continue to examine these shifts in the global economy—and prepare our students to understand and respond to them effectively.

Learn more about our international programs:https://www.swissuniversity.com/

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