When two elephants fight, it is the grass that suffers.

That is the case with the trade fight between America and China – two goliath economies.

Now, the World Bank is warning that the trade war has grave consequences on global economy.

According to World Bank, the trade war is already inflicting collateral damage and threatens to do yet more harm to the global economy.

In a semi-annual Global Economic Prospects report on Tuesday, the bank said the global slowdown is beginning as government and corporate debt rise, especially among the poorest countries, while mounting interest rates increase borrowing costs.

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The report was markedly more pessimistic than a year ago — when the outlook was for synchronized global growth — and peppered with exhortations to take “urgent,” “imperative” or “critical” action.

“Risks are rising,” senior World Bank economist Ayhan Kose said. “The global economy is going through a difficult period. Skies are darkening, and we see the global economy slowing.”

Growth of the world economy is expected to slow to 2.9% this year, and 2.8% in 2020, slightly below the previous forecast, and the estimates for nearly all regions and countries were downgraded.

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