Growth of 2.7% would be the joint weakest performance since 2019, aside from the sharp contraction seen at the height of the Covid pandemic.

It is a rate the world can “live with” according to the bank’s deputy chief economist Ayhan Kose, but would not be enough to improve people’s living standards in both richer and poorer countries.

He warned trade tariffs, which President-elect Donald Trump has threatened to introduce on imports to the US, could have worldwide economic consequences.

The prospect of higher taxes being introduced on imports to the US is concerning many world leaders because they will make it more expensive for companies to sell their goods in the world’s biggest economy.

Tariffs are a central part of Trump’s economic vision – he sees them as a way of growing the US economy, protecting jobs and raising tax revenue – and has threatened to issue tariffs against China, Canada and Mexico on day one of his presidency next week.

The US is the world’s largest importer. China, Mexico and Canada account for about 40% of the $3.2 trillion (£2.6tn) of goods it imports each year, according to official data.

Mr Kose said “escalating trade tensions between major economies” were one of the bank’s biggest fears for the global economy in 2025. The World Bank aims to foster long-term economic development.

Other worries include interest rates being kept higher for longer and increased policy uncertainty denting business confidence and investment.

The World Bank said even a 10% increase in US tariffs on imports from every country would reduce global economic growth by 0.2% if countries did not retaliate. If they did, the global economy could be hit harder, Mr Kose added.

“Anytime you introduce restrictions on trade there will be adverse consequences which are most often endured by the country that introduced them,” he said.

Mr Kose said the low growth rate being forecast for the world economy in 2025 meant living standards would not improve “at the pace we saw in the past”.

He pointed out that in the decade before the pandemic, growth on average was more than 3% a year.

“When you look over a longer time period we think growth numbers will come down. That worries us,” he added.

Economic growth is widely seen as fundamental to reducing poverty and funding public services such as healthcare and education.

It is also key to creating the jobs and increasing pay, at a time when inflation remains above the 2% target set by central banks in the eurozone, UK and US.

Governments around the world are grappling with different methods of boosting economic growth, and Mr Kose warned there no magic solutions.

“The bottom line is there is no ozempic for economic growth. Countries need to think about what policies to implement,” he said.

In the UK, the government is looking towards the artificial intelligence industry, while in the US, Trump wants to cut taxes and regulation.

Expanding manufacturing capacity is India’s priority, but China is taking steps to increase consumer spending.

Andrew Bailey told the BBC he was “following extremely closely” whether the Trump administration will change its support for the International Monetary Fund (IMF) and the World Bank.

Sources in Washington said the two institutions were caught by a White House executive order for a review of United Nations (UN) and other international organisations.

Mr Bailey said it is “very important that we don’t have a fragmentation of the world economy”.

He said “a big part of that is that we have support and engagement in the multilateral institutions, institutions like the IMF, the World Bank, that support the operation of the world economy. That’s really important.”

There is growing concern in finance ministries and central banks around the world about US disengagement from the institutions, with radical changes to the global financial system now being floated in Washington DC.

The “Project 2025” suggested blueprint for Trump’s presidency, which was authored by figures who are now key White House staff, recommended withdrawal from both institutions and termination of financial contributions.

It said the institutions “espouse economic theories and policies that are inimical to American principles of free market and limited government principles.”

Following a White House executive order, all international intergovernmental organisations of which the US is a member will be reviewed to determine if they are “contrary to the interests of the US” and “can be reformed”.

The six month review may then provide recommendations for withdrawal to President Trump.

Sources in the G20, or Group of Twenty – a club of countries that meets to discuss global economic and political issues – said that during his first term, Trump’s team suggested abolishing the IMF at the 2018 Buenos Aires Summit.

The IMF and World Bank are specialised agencies of the UN.

The US is the largest shareholder in both the Fund and the Bank, institutions which were created by the post-war Bretton Woods Conference 80 years ago.

The IMF provides last resort lending for nations in financial trouble, and surveys economic problems.

The World Bank gives money and cheap loans to developing countries for poverty alleviation and development.

The Trump administration is yet to appoint staff to this area, but USAID’s development spending is currently the focus of Elon Musk’s Department of Government Efficiency cuts.

Some members of the administration are believed to be particularly focused on the World Bank’s loans to China.

Asked about the possibility of the US leaving the Fund, the IMF said yesterday it had a “long history” of “working with successive US administrations”.

Donor countries committed $23.7bn to replenish the bank’s concessional lending arm, known as the International Development Association (IDA), a World Bank spokesperson told the AFP news agency, marking a slight increase from the roughly $23.5bn pledged during the last fundraising round three years ago.

The bank can use this money to borrow on financial markets, allowing it to leverage the amount raised by around four times, unlocking about $100bn in new loans and grants, up from $93bn in 2021.

“We believe the historic success of this IDA21 replenishment is a vote of confidence and support from donors and clients,” a World Bank statement read, referring to the current IDA funding round.

“This funding will be deployed to support the 78 countries that need it most,” World Bank President Ajay Banga said in a separate statement, referring to the developing countries that are eligible for IDA support.

It would, he added, help provide “resources to invest in health, education, infrastructure, and climate resilience,” as well as to help stabilise economies and create jobs.

The World Bank’s announcement follows two days of talks in the South Korean capital, Seoul, a city still reeling after President Yoon Suk-yeol declared martial law late on Tuesday local time, before backtracking under pressure from lawmakers.

IDA has become the single largest source of concessional, or below-market, climate finance, and about two-thirds of all IDA funding over the past decade has gone to support countries in Africa, according to the World Bank, an international development organisation owned by 187 countries.

IDA replenishment is a crucial part of the bank’s operations, and happens once every three years, with much of the funding coming from the United States, Japan and several European countries including the United Kingdom, Germany and France.

This year, the US announced ahead of time that it would commit a record $4bn in new funding to the IDA, while other countries – including Norway and Spain – also significantly stepped up their financial support.

Thirty-five former recipients of IDA assistance have graduated from developing economy status in recent decades, including China, Turkey and South Korea, with many of them now donors to the fund.